Datuk Shahrir Samad reveals a little more on what went behind the doors at the Cabinet Committee on Inflation meeting, which resulted in fuel prices to be revised to RM2.70 per litre for RON97 fuel and the formation of a new subsidy payment of RM625 for cars with engines below 2000cc.
He also gives a preview on what to expect next when it comes to how we buy our fuel and how much we pay for it.
- The government decided to increase the price immediately instead of the before-mentioned August date as calculations revealed that if they had waited any longer, the price increase would have been different.
- The government was considering three quantums of increase: RM0.50, RM0.78 and RM1.00, which would have resulted in fuel prices of RM2.42, RM2.70 and RM2.92 respectively. Initially the committee favored RM1.00, but RM0.78 was picked because rather than setting it at RM2.42 and increasing it again to RM2.92 soon later, a one-time increase was preferred so that it has to be swallowed once.
- The RM2.70 per litre price for RON97 fuel is expected to stay for awhile (note that this does not mean a confirmation, what more in these times of conflicting government statements), with further increases in crude oil prices to be absorbed by the government. The market price for fuel will only be implemented sometime in the future where fuel prices will be reviewed every month and will be set at market price minus a fixed RM0.30 per litre subsidy.
- The RM625 cash subsidy via postal order plan is a one-off thing because for subsequent years there will be a new way to implement the subsidy with more controls as the current system has many holes in it, but was chosen because it was the quickest to implement.
- A new system based on quotas will be introduced next. The current cash subsidy is based on a 66 litre per month consumption (calculated over 10 months). The suggestion is that the new quota system would also assign 66 litres of fuel per month, but it will likely be based on a person rather than on a per-car basis as it is currently with the road-tax based system. This closes the loophole of someone having multiple cars but only really driving one enjoying more subsidies than he should be getting.
- The way to determine who should get the subsidies is still being finalised, but a MyKad-based system or something based on some other kind of card will be used to identify the person as qualified to get subsidies at the pump… apparently this year. I think the directors of ePetrol have valid reasons to be smiling in their sleep now.
The picture that Datuk Shahrir paints seems to be one of the government’s coffers running dangerously dry, so dry that urgency of reducing subsidy expenses seemed to be placed at the highest priority.
It’s sort of implying that waiting just two months and continuing to pay subsidies at the previous level for an additional two months would have such a devastating effect that even a RM2.70 petrol price could not be sustained for the next 1 year.
It’s either that or the government is playing it safe and is doing a subsidy bill projection taking into account further massive hikes in crude oil prices.
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1st
Apparently RM2.70 will be the ceiling price for the whole 2008…
Source,
http://thestar.com.my/news/story.asp?file=/2008/6/11/nation/20080611194511
I wonder if G will still ‘sings the same tune’ when (if ever) the crude oil price hits USD200 per barrel this year? :|
(Current price is USD139 per barrel. May, 2008 = USD120 per barrel)
Datuk, good job! Reduce subsidy and “EAT more”,Bodowi n company sure love u but not rakyat sorry. I m from JB. u were bn parliment candidate and i proud of myself i did not vote 4 u. But i m shameful that u r from JB.
Flip flop again. http://www.utusan.com.my/utusan/info.asp?y=2008&dt=0612&pub=Utusan_Malaysia&sec=Muka_Hadapan&pg=mh_01.htm Can we believe them? Azmin said Pak Lah give allocation of RM10m to each of Sabah & Sarawak MP, afraid of them hopping. No wonder there is not enough money in the G’s coffer. This also give a bad indicative for FDI. It give a look that the economy is waiting to collapse. Tahniah Nor Mohamad Yaakob. I really think it is his idea since when inflation grow, interest rates will also high and i think he has a lot of money to put in his FD. The rakyat gonna suffer.
We’re not idiot merely swallow everything out from a minister. Oil-wise you ask us to accept reality of the DEVELOPED nations, car-wise which is generally we pay three times i.e Wish, Stream only +-RM50k in Japan; Harrier +-RM80k in Japan we pay for Naza et al imported CBU but reconditioned about RM240k if you’re lucky enough and why not follow suit as well?
Even in Singapore a Civic 1.6 in 1998 was SGD110k+ then now merely SGD73k. Compared to Malaysian scenario when buying a car or two is necessary instead of south direction our car prices ‘generally increase, in 1998 our Corolla cheaper than Altis Rm102.9k.
Though money-wise our RM then strong and oil that malaysia sold then nowhere near to current rate which is Malaysia enjoyed a lot of benefits from price hike in international fuel market.
return the rebate back to those buying new car for last six months or one year to make it cheaper and shorter payback period, adjust the price of fuel like those developed countries, abolished tolls from the saving, BUT improved the transportation first before hike (fuel prices).
Government actually suggested they have no idea whatsoever of rakyat suffering only use their shortsighted mind (pretty doubt how they can think and made a important decision). For me 10% cut of their allowance is nonsense, at least 40% of total take home salary+allowance. Most of them don’t bother at all?
And Shahrir already proved me wrong when they’ll monitored prices as business too can’t afford to loss.
If the gov is a lot more transparent regarding this issue, I believe the majority of rakyat will be able to accept its actions. Most of us are rational and thinking individuals. We want to know the reason why. We want to know the numbers. We want to know the various income figures that gov is collecting and where they are spent. Is gov coffer is really dying up now? Why reducing the subsidy is the best course of action to take? Aren’t there any other alternatives?
Following the live debate between Datuk Sharir and Pas’ Salahuddin Ayub on TV1 last Tuesday, I come to conclusion that Pakatan Rakyat too has no concrete solution to the issue. All their talks have been mere rhetoric all along. The best Salahuddin Ayob could muster was BN, PR and relevant NGOs sit together to discuss the issue. If followed through, it will be a good move though, no doubt. At the very least, it will silenced PR and NGO accusation of irresponsible gov. But I’m sure something much more acceptable to the rakyat will come out of it.
The point is, is the BN willing to do this? BN should! For rakyat’s sake, please swallow your pride and work with oppositions and NGOs. Be transparent and not too politically motivated. Is that so hard?
Sorry to say!
I hate getting this kind of Supprised!!…nowadays..most of the G decision is supprising garceful. Their words between minister also does not consistent.
Is this type of person we hope can lead our nation?
..USELESS..
I seldom use the following word whenever i join in any cyber discussion, but after reading/watching/hearing all the buzz the G says abt the current situation , i just can’t help but to say – “Hampeh”…!
alwizz talk2 wit no good solution..alwiz make rakyat angry…idiotic politians
Last 2 days Salahudin ask Sharir where did 4bil went for improving public transport. That was when petrol price is recenty hike to RM 1.97. He didn’t answer.
Yesterday he’s complaining on unefficient public transport when he tried to commute on it…
Now you know WHY..!!!
Supposedly any planning must have masterplan, and masterpan had deadline. And this masterplan doesn’t came out. What happen? Too much holidays as ministers??
Whatever new system they’ll use next, I hope it is not the very unfair c.c.-based system currently used.
I thought that the APs system will be abolished by 2010 due to AFTA and WTO’s requirements. The Guomen has announced it few years back when Tun Dr M brought out the issue of APs and the AP Queen got into trouble later on. Now the new guy who took over said that the AP policy will be extended to 2020, wow, Great Vision? Reason? He wants to give the 140 Bumi APs Auto companies in Bolehland enough time to be better prepared, so kind huh? Imagine, 140 companies will receive an average of 1000 APs per year (not including the clones), each AP can net in a profit of RM30,000.00 (a very conservative figure, some says it is RM50K), that’s astronomical figure.
The RAKYAT has been burdened with petrol hike and inflation, exorbitant auto excise duty and sales tax, toll fees and etc, and this minister wants to give priority to these people, what a joke?
If these companies have been active since 1990, lets make a simple calculation:
Per year: 140 companies x 1000 APs x RM 30,000 =RM4,200,000,000.00
multiply by 20 years (1990-2020) :
RM4,200,000,000.00 X 20 =RM84,000,000,000.00
I hope my maths is correct. By the way, where will this huge sum of monies go to? Will the RAKYAT benefits? Who are these people? What are their connections with this minister? How many ordinary Malays and Bumis will be benefited? What are the reactions from Thailand, Indonesia etc(the 10 + 3))and what will happen if they complain to WTO? What are the implications to Bolehland? We are suffering and yet ,these ministers….
Can someone enlighten me please?
I guess those people that voted for BN benefit from this, so majority of Malaysian still benefit from all these government activites… long live BN! :P
Common trick G been using la. Tell you this during press conference and later change it right after that….
So do we think what the ideals that come out from G’s mouth is correct?
useless la.
I’ll bet they come out with something that can be taxable so everything they reduced will be able to earn back from something that they taxed.
Go M’sia!
2 month later, the oil bubble exploded and become USD70 per barrel, thou its nearly impossible so far, but i am sure gov will say “We have promised RM2.70 for whole year”
hi paul,
lets do some maths…
according to Shahrirr, fuel price to be incresed in august in 2 months or so, that was published in newspapers at 7am BUT increase 17 hrs later! let say no more increment until next yr, 7 months or so….according to my calculation …theres a possibility that it will increase say around 60 hrs from now? hehehe….with his style, im not surprise! Good luck to us all!
from my point of view, it is ok to make private vehicle expensive BUT plz and plz in return provide us with 1st class public transport with reasonable price!
do u know that in the UK u can purchase student all day ticket which only cost around £2 and u can go anywhere hop on to any bus up till midnight! asssume RM1.00 = £1.00…that is very cheap LOL! and u get a bus every 12 mins….
I can’t force myself to believe anything they said anymore… they’ve NO CREDIBILITY at all… it start with the great sleepy head & spreading to all his ‘machai’…
& as someone said before… ‘HAMPEH!!”
http://www.youtube.com/watch?v=l6h9oP9IbUc
That link will be useful. The debate between Salahuddin and Shahrir on TV1. No censorship. Will take 1 hour though. Download it before it gets deleted or block
Current political situation in Malaysia is very-very bad. If this no clear majority govt go on for much longer, more flip-flop from the govt. will be seen. It doesn’t matter who head the govt, but with no support then it will be like this for some time. The capitalist will win.
-amir-