Rumours surfaced last week regarding another fuel price increase, leading deputy finance minister Datuk Ahmad Maslan to come out and deny talks that there will be a 10 sen hike for RON 95 and a 15 sen hike for RON 97. It was just earlier this month that the price of RON 95 petrol and diesel jumped by 20 sen to be RM2.10 and RM2.00 per litre, respectively.
People are jumpy, and it is fertile ground for rumours such as the above to take root and grow. But Malaysians can expect no fuel price increase in the near future, an economist with Alliance Research, Manokaran Mottain, told Bernama. Mottain is a member of the high-powered National Economic Action Council (NEAC).
“The people are still in the midst of absorbing it (the fuel price hike). Any subsidy rationalisation will only be decided when it is really necessary,” he told the national news agency.
Mottain added that the Fiscal Policy Committee (FPC), chaired by PM Datuk Seri Najib Tun Razak, will only convene every six months. The FPC, which was set up earlier this year, was established to work out the government’s fiscal deficit target, which is 4.0% of GDP this year, 3.0% of GDP by 2015 and a balanced budget by 2020. Key to this is subsidy rationalisation, which has already kicked off, and the subsidisation of fuel is a substantial part of that.
In August, the actual price of RON 95 petrol was RM2.79 per litre, while that of diesel was RM2.73, and at the previous retail rate at the pump of RM1.90 per litre for RON 95 and RM1.80 for diesel, per litre government subsidisation was 89 sen for RON 95 and 93 sen for diesel.
In September, the unsubsidised price of RON 95 is listed as RM2.73 per litre, and that of diesel RM2.80. With the increase in pricing by 20 sen for both RON 95 and diesel on September 3, per litre government subsidisation at the pump dropped to 63 sen for RON 95 and 80 sen for diesel as a result of the hike. Meanwhile, the price of RON 97 was also increased by 15 sen to RM2.85 on September 4.
The government says that following the recent cut in fuel subsidies, it will save about RM1.1 billion this year, and if extrapolated to a full year, savings can reach RM3.3 billion per annum. A massive RM24.8 billion has been allocated for fuel subsidies this year.
So, no fuel price hike for now.
Looking to sell your car? Sell it with Carro.
traffic smooth will save fuel. everybody do yr part.
dun cut queue like mad cow.
might as well ask those road hogger driving on the correct lane.
cut subsidi this cut subsidi that but never cut CORRUPTION…whats new?
guess what….A bad news become a good news to rakyat…how pathetic we are
no choice, education problem to many. Their parents know how to f but dunno how/what to teach…
If we drive accordingly..
avoid cutting queue..
avoid cursing other drivers..
void changing lanes if you’re not going to exit anytime soon..
less profanity (none better)..
then our children would do the same too.
Let’s start from ourselves! :)
Not now…after PRK at Kedah…???
Rumors rumors..
Somehow whatsapp is a good base to spread rumors.
I bet this fuel hike rumors started by someone from fuel retail to secure more biz towards month end (Sept 2013).
gonna reiterate my rant here….again read at your own risk ^_^
IMO, the most pressing issues are not about the amount of removed petrol subsidies, but rather the manner of its being removed and how it’ll be channelled back to society. I’m not a great thinker, but here’s some of the points that I think gov’t need to address:
1) the savings for 2 years 1.1b + 3.3b = RM4.4b (the saving back then from increase petrol price of 20sen), what will the govt do about it then? need much more reason than just ‘subsidy rationalization’
2) if we want to save/need that amount of RM 4.4b in 2 years (for whatever reason), isn’t there another ‘way’ to do it before cutting the petrol subsidy? example, increase further tax on the smoke & alcohol goods, increase excise duties of imported cars (luxury one), increase tax for those PLC companies who haven’t pay zakat, etc.(i’m sure you are well capable to come with that initiatives)
3) why reduction in RON95 announced first, then news on reduced subsidy on RON 97 are announced later? seems like ‘knee-jerk’ reaction from govt POV. Btw, why are we still subsidize RON97?
4) why increase 20sen (plus romour of additional 10 sen in less than a month)? can’t our G increase the price gradually? first 5 sen, then next 3 months another 5 sen so on so forth till 20sen. it seems too sudden of increment, event the last time the petrol price just increase 5 sen
5) if the savings of RM4.4bil, govt wanted to use it for BR1M/baucer buku/etc., IMO, this is not ‘very helpful’ in the long term to our society. although it worth to point out that it may help/ease some of the burden for the poor but for how long? Say BR1M being offered RM1k per household per year, it’s equivalent to RM83 per month or RM3 per day (equivalent to milo ais one cup). with that being said, do you really think that BR1M will solve the poor’s life for a year, let alone in long term? I think most of us are doing quite ok even BR1M is not offered back then, just need to control the commodity goods’ price, that’s all. “Dun give the person a fish, teach him/her how to fish”
all in all, I think that govt or Mampu can do much better in terms of coming up with more innovative ideas to get/save/recoup back the said RM4.4bil or more, and not just hack & slash the benefits that rakyat get in terms of petrol subsidy since we’re one of the oil-producing countries and one of the OPEC member. the hike in petrol price will resulted in hiking in most (if not all) the goods & services price…it may and will supersede the BR1M benefits to the poor anyway.
What about the subsidy going to IPPs? Itu lagi banyak oi, kalo banding ngan subsidi rakyat!
Mana boleh, that is like asking them to give up their periuk nasi. If like that how to safe money and use their son buy million ringgit hse and takeover million ringgit company.
@Kambinganas…
Which one the best choice for RAKYAT….
1) TNB increased the tariff, so Govt can pay subsidy straight to TNB.. This fact need to count also.. “CURRENTLY WHAT EVER INCREASED, NEVER EVER WILL BE DECREASED/REDUCE IN THE FUTURE”…
2) Govt Pay subsidy straight to IPP’S on behave of us (Check your monthly bill, its stated there). Elect Tariff didn’t increase & subsidy also variable based on resources market price (Gas,Diesel & etc) which mean subsidy could be lower or higher. In case is lower, this also mean Govt burden on subsidy also lower compare to option 1.. Subsidy still variable but tariff still maintain high & RAkyat suffer….
Kindly think properly about IPP subsidy in business term.. Petronas = IPP = Rakyat…
Petronas will never given discount to any their client coz that will decreased Petronas Gross Sale Report… effect Petronas Year End Report…
agreed. just to make worst, increases of fuel will increase other goods. give brim which to buy increased goods.
i cannot see who is benefiting among those. ops. the G gets it all
Correction, Malaysia has never been an OPEC member, if we become a member we have no control of our oil/gas production. We need the control to manage our nation cash flow. We may be an oil producing country, but a small one and declining, as of last year we are net importer of oil.
As for the IPPs, the subsidy is on fuel which is being borne by TNB. The IPPs just generate the power if their power plant being nominated to produce power. What they get is capacity payment to cover their capital cost. All fuel which is the one that being subsidies is under TNB accounts, which in turn make sure that we are still be able afford to switch on the lights. Anyway, come 2017, most of our baseload power will be coming from coal, not so much on gas, hence less subisidy. But be prepared for higher tariff if coal price increase.
WTF.. Coal price increase vs higher tariff….
Mostly TNB get coal from Indonesia at super lower cost than market price. Due to corrupt TNB Top senior management, they claim in TNB Book when coal reach to our shore at market price & the diff they “SAPU”… I has been there (Micasa Hotel) once.. Can you imagine at 2.00am TNB (Co Sec,Finance Director & Law) can woke-up & came to Micasa Hotel to discuss the “CORRUPT PLAN”.. somemore the teach us how to done it… This all happen when Govt appoint politician as Top Senior Management.. Anything involve politician, Rakyat will suffer… BN never learned & change…
Correction: Malaysia has never been an OPEC member…not enough quota ma…but I strongly agree with your point No. 2.
I don’t really agree with point No. 4, because no matter how much (1 sen or 20 sen, whatsoever) govt increase fuel price, trades will always take chance to increase price of goods by minimum 10 sen (they won’t increase less than that). So, if govt increase fuel price 10 times, staggered at 1 sen each time, price of goods may increase, let’s say, at minimum RM1 (I say minimum) over that period. But if fuel price be increased to 20 sen one shot, the effect on price of goods may be different. It may be lesser coz, for example, I don’t think traders will increase price of a plate of fried noodle from RM3 to RM4. The maximum may be around RM3.20 – RM3.50 per plate. Just my two cents :-)
Near future huh?
1. Umno election
2. Kedah PRK due to ex-MB passed away…
saploh kali cakap, sablas tabley pecaya…
Nor decrease…
Sell car, sell house ,
Bring everything and everyone out of Malaysia !!
Here cut there cut subsidy, does our Lovely Caretaker cut stamp duties, income taxes or cooperate taxes??!!!
Without those cuts , where is our increment or bonuses to live in Bolehland !!!!!
Wer do u live? Cave? Did u hear the budget last year? Seems like u dont even pay tax. Gst for mcD or KFC boleh la.
Sorry, I don’t believe you NEAC.
we want cheaper bmw/merc/audi!!!!! i suggest increase rokok harga to RM20, people will still buy.
yay… thank you BN for not increasing the price…
Price never increase, it’s just subsidy reduced only
you smell that ?
smells like bull crap
Then don’t need to allocated subsidies to fuel price.. just discontinue sales tax, import tax and excise duty tax for all the new car and import car. Easy go happy. Why don’t announce how much those tax collected from buyer???
Rokok now RM12.00 per box.
BN,penyamun rakyat sendiri!!!
Asal miskin,masuk politik or be gov servant then jadi kaya raya+berlagak!
Dear BlackJKX
be government servant does not make you kaya raya. But if you join politician yes I agree with you. Government servant monthly paid like crap compared to private sectors with 5 to 6 month bonuses.
How sure r u the price wont increase?? Before, i pumped Rm20 daily petrol just enough from home to office and back, now after increase 20 sen i have to pump minimum Rm30 per day, in a month increase of RM300, and the worst thing is the gomen taking my hard earned money and giving as BRiM handouts, which as a struggling middle class, am not entitled to
If crude oil decrease, but Ron95 still selling RM2.1 then means RON95 increase indirectly again, cuz sure they will say need to monitor market bla bla, but in fact already less subsidy given…less than 63sen if crude drop below $90…
Yeah right~~
today say no~~later tomolo they will give all kind of funny excuses again~~
No one from THAT side can be trusted~~
Peugeot 508 hybrid diesel faster come out.
G cut the crap! Before election everything promise, after G won everything seems never said before. Very intelligent of our G. But our rakyat treated like dumb. Next election will tougher if within the time being G still act nothing. I was wondering if G ever look at how ppl comment, do they feel proud or ignorance ofhow we felt. Ppl is getting bored of G, they never deal with our iissue but pretend to be understand. Better switch everything to non subsidies, we still accept if cars were cheaper. Everytime we saw new car launching. Is never worth to buy as we can get 2 to 3 same car at other countries. G is forcing us to buy P products. But in reality, the play fool with us even own MADE still being tax like bloody hack! G, pls come out with something now, election is over n u won. Ever think of losing? Never lost never learnt. Evertime winning is to easy for them. Slogan Janji ditepati? Rakyat didahulukan? How can achieve 1 Malaysia if unity is no more in citizens heart.
Start from yesterday petrol price in India went down Rs3,70 per liter. Why Malaysia need to increase the price.
“People are jumpy, and it is fertile ground for rumours such as the above to take root and grow.”…HAMPEH….
Dude.there is only one reason why the rakyat got so jumpy bout the fuel price hike..its bcoz THE BLOODY G ALWAYS JUMP INTO STUPID CONCLUSION AND ALWAYS JUMPY-JUMPY WHEN DOIN THEIR DECISION”…wondering how can they live while ppl r talking bout how stupid they r each time they talk like a smart ass.shame on u najib and the gang!!!