If global crude oil prices rise too high, the government will intervene to soften the blow for RON 95 petrol and diesel, deputy finance minister II Datuk Chua Tee Yong has said, according to a Bernama report.
“However, the intervention mechanism has not been finalised yet, and the evaluation process being undertaken by the Domestic Trade and Consumer Affairs ministry is still ongoing,” he said.
He added that the move to a managed float system for RON 95 and diesel, scheduled to begin December 1, was to enable consumers to enjoy the current down-trend in global oil prices. “With the current low oil prices, not announcing the float means the government has to impose tax on petrol. This is not what we want to achieve,” he said.
Chua cited for comparison Indonesia, where he said due to taxes, RON 88, RON 92 and RON 95 are priced at the respective equivalents of RM2.35, RM2.70 and RM3.20 a litre.
He said that as the Organisation of Petroleum Exporting Countries (OPEC) has not indicated any reduction in exports, he believes there should not be any jump in global oil prices in the short term.
“However, we will continue to monitor these developments to ensure the floating of fuel prices would not be an extra burden to the people. A subsidy budget of about RM37 billion has been allocated for 2015.
“If there is any uptrend in oil prices, it has to look into other mechanisms that can be used, either via a subsidy or assistance, to ensure people are not badly impacted,” Bernama quoted Chua as saying.
In another report by the national news agency, deputy finance minister Datuk Ahmad Maslan said that the managed float system is expected to be used on a monthly basis as long as global oil prices are below US$80 (RM267) a barrel.
He opined that beyond that price, subsidy rationalisation needs to be in place. “This does not mean the subsidy rationalisation will be comprehensive as at present but be more targeted. It could include introducing subsidies based on income,” he said.
We need car price to be down.
Nanti kroni AP mau makan apa?
Rakyat bayar cukai mahal tak apa, janji kroni kenyang.
Looking on the oil price today, government already making profit with RM2.30 a litre. Subsidize what lar?
When the oil price hike, they will earn less, then what they do? They will increase the fuel price then claim that they are still subsidizing the petrol.
Who care about Malaysian? They only care about money!
Mark my words when crude oil increase, you will see their tricks.
Yeah, Dato, you have the title we do not want and you can say anything without black and white guarantee. Only idiots will believe anything said by a self-serving and self-important politician. We the people may not in power but we do sum up but not you. If you are credible on this issue, put your own money where your mouth is, then we will believe. Right now you are just as irrelevant as anyone in Putrajaya, failing misearably to recognise the fact that without the people, you are no body. Rigging votes will come to an end one day, and we will look for you to compensate whatever there is fro you. Scum!
What a stupid comment from a Minister. He should not come out with statements that make no sense. What about Singaporeans filling up Ron 97? Malaysians lose even more. This fellow should just stick to making blue films like daddy.
I am ashamed that such Ministers govern my country.
Speechless to G, impose every burden to rakyat, eventually what had there achieve? 1 malaysia? naih u know how much it lost, GST? way to advance country? ya, we all know who gonna advance at all, in the end, u tell me…..nothing!
We request for “Abolish fuel subsidy, abolish car excite tax”.
Government heard us, they abolish fuel subsidy, but maintain car excite tax.
If they make the basic 95 floating, all the transportation company to will put the highest margin in their fuel portion. When fuel is high, they earn nothing or less, but when fuel is low, they have the earning. So in short, everything starts to rise again. When GST come, it rise again.
This is going to contribute to the inflation and government will say it is still within 5%. I don’t know where they get their title as finance ministry.
I think the other 47% of voter doesn’t expect it to be as bad as they though.
yeah..
hurm..
but Brunei still sells their RON97 cheaper than our country..
Around RM1.55/L ….
Yet we sells RM1+- extra than Brunei..
So 95 should be cheaper…
Brunei negara kecil dan penduduk sikit. Hasil pengeluaran minyak negara mereka teramat jauh berbanding penggunaannya. Malaysia pulak sebernarnya import lebih berbanding eksport minyak sejak awal tahun ini. Saya ada share link. Cari la nama saya kat bawah dan baca article tu.
So what? We Export grade A++ sweet crude while importing Grade F oil for our people to use. Its like we export 1000 units of lexus overseas and import back 1100 units of viva. You do the math.
Correct. Gov should lower the fuel price even more, should match Saudi price. Car price also cheaper. Forget proton, help rakyat buy ferrari. Die die must drive nice car, Gaya first…everything second.
One month had to pay tax… Imposed one month tax, more than enough to recover 1MDB RM665.4m losses..
lu jangan caka macam ni, naati gua susu sama wak bru tau, lu tau tu tony sula kaci saya susu, banyak lagi wa mau susu, sebab susu sula naik
well i think in indonesia it’s more expensive due to distribution which taking a lot of resources since not easy to distribute petrol to every island, that’s why their petrol so expensive
..Now, let’s compare.. erhmmm..we are still..errrrr I believe..
..We will monitor..aaa.. Sick my duck !!!!!!!!
what makes you still believe in his words?
Hello deputy minister, can you differentiate Malaysia a net oil exporter vs Indonesia a net oil importer? Stop comparing the prices of petrol prices between the two countries. Crude oil revenues belong to all Malaysians and not to elite leaders of the country only.
Actually Malaysia is a net importer since early this year.
article was misquoted dude… Malaysia is a net importer of petroleum products, a net exporter of natural gas and crude oil. Net net we are still a net exporter. U can confirm that with RHB economist ;)
Its been net oil importer since january this year. Read this article http://www.therakyatpost.com/business/2014/11/04/lower-oil-price-little-impact-malaysias-external-trade/
yes, you’re right mr no-one-must-know-crap-crap…
you have a house? got wife and kids? you got charge your wife and kids when they wanna poo in your toilet?
it’s your house, your toilet, your family, got charge them everytime they wanna piss and poo or not? outside bangla is charging 30 sen everytime wanna poo. you charge your family? can start charging them loh.
compare poo charge to norway, ours is lower. compare poo charge to aussie, ours is lower. global poo price is around ~USD1 everytime wanna poo.
why don’t you charge your family USD1 everytime they wanna use your toilet?
can say you’re a great leader, charge USD0.50 and give subsidy USD0.40 and charge your family USD0.10 everytime wanna poo. still RM0.30 sen profit!
say friends come over and also wanna poo in your house. but you no have enough toilet. so must import portable poo house.
following your logic, just because you don’t have enough toilet and must import a portable poo house for one person, you no have no more toilet. because must import a poo house, straight away act like there’s no more toilet and everyone has to pay.
so clever lah you.
Ni apa kena dgn jaga anak bini? Saya cuma beritahu benda sebenar bukan cerita pasai kos nk jaga anak bini. Lagipon awak lagi rela ka dok kat balngladesh berbanding malaysia?
Bunch of clowns that belongs to the circus rather than being in the government! Honda HR-V is only priced at RM65K in Indonesia. Can you give us at the same price when it comes to Malaysia without the extortionist taxes. President of Indonesia flies ECONOMY CLASS into Singapore with his family to attend his son’s graduation! Does ours do the same???? So don’t even dare compare with Indonesia cos you are not even at their level.
negative dude…probably G got to pay more if najib fly ecomony, as more bodyguardsss got to be around
Intervention mechanism is not ready yet…..then why are we implementing the subsidy removal immediately?
Would u start poo-ing even before removing ur pants?
All hail the flip flop kings! May I refer to a statement made just a month a go which goes to the tune of,
“We have no plans to review the fuel price, but we will work with the Finance Ministry and Bank Negara Malaysia to monitor the price of crude oil. We will only make a decision if there is a need,” Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek told the New Straits Times.
Read more: http://paultan.org/2014/10/17/govt-says-plans-review-fuel-prices-despite-oil-prices-dropping-lowest-four-years/#ixzz3JyNKu3rI
haha knew they would use the recent price increase of petrol in indonesia as comparison…typical…
Why so difficult deputy minister II: Just do the following: (1)Let the petrol diesel follow the world market price; (2) No more crazy AP; (3) No more crazy import duty (4) No more crazy excise duty; (5) Give us the Euro 5 diesel NOW (not 2020); (6) We don’t need the BR1M at all!
Try this the country will make it 2020!
Ya. You are true..
but what you wrong is.
they dont care about 2020!!
They want jaga pocket mereka je.!!!
Actually 2020 is the dateline that we will be bankrupt at the rate this G is running the country
which means there is an emergency funds to fend off the higher prices , but in msia , thers always sting magical about emergency funds , by 1st month of the year , “someone” will make a “project” out of these funds,and pooooff….funds disapear into a DBS account in singapore…all these are good in principle…bt in reality…
This junior minister is talking junk.If nuclear war breaks out between Iran and Israel tonight,tomorrow what will be the price of oil per barrel in US Dollars? 120 USD per barrel?
He,with his actor dad can roll out BRIM 2,3,4,5 handouts?
His dad is good at making forbidden videos,he is good at rhetoric only.
Politicians talk 3,talk 4….we the poor rakyat suffer.
Ahmad Maslan and Chua Tee Yong, enough said.
Government to intervene by selling drain water in global crude market?
This deputy minister all talking nonsense. If you keep quiet, no one will say this son of Chua is mute.
Very wise and promising words from an up and coming minister who is known to be intellectual and committed in his job.
It’s unfortunate for many ppl in this country that the subsidies need to be removed, but its a move that needs to be done for a sustainable economy and every right thinking man would want this to happen
Now that the government has promised pro activeness in adjusting the price as and when the prices changes, I’m very encourage and have full faith on the government’s way in handling this new mechanism.
A big thumbs up for this administration and hopefully more good news to come!
It seems someone is living in a dream.
Pls wake up boy!
RM37 billion worth of subsidies has been budget for 2015 and since now there is no subsidies what is the RM37 billion going to go? I predict the ministers will be having more champagne showers next year.
Just like the opening statement from Namewee.. ‘tok 1, tok 2, tok 3, tok 4, tokok!’
Why so difficult deputy minister II: Just do the following:
(1)Let the petrol diesel follow the world market price;
(2) No more crazy AP;
(3) No more crazy import duty
(4) No more crazy excise duty;
(5) Give us the Euro 5 diesel NOW (not 2020);
(6) We don’t need the BR1M at all!
Try this the country will make it to 2020!
We are petroleum exporter. We rakyat pay so much for no subsidy soon. Hybrid now also become expensive. How come. Ado. Government really picot us to the limit.
*picit
No subsidised No Problem!!!
Bring Euro 5 Diesel to whole Malaysia!!!
Bring down car price!!!
Please use the extra income for the benefit of the nation, such as
1. more free-toll roads
2. built more motorbike lane.
3. Better enforcement, not only laws.
4. Better transportation.
Why arabs sell oil to us at cheap rate
Is us want to reserve oil
why
we better prepare & spend wisely
crap, crap and more crap……from the Govt.
If you are really concerned about the people, why not continue to provide subsidies at current prices so the Rakyat can enjoy low fuel prices like other oil producing countries eg. Brunei
Eg current oil prices Rm2.27 – Rm 0.30 subsidy= RM1.97!
You would be doing Malaysians a big favour and score a high point in the people’s happiness index!
Guys, just stop buying cars…!
This statement is just a loophole to keep the excuse of not lowering the taxes for cars. In reality they just want to keep the taxes for cars sky high while not giving any subsidy for fuel at all.
Make up your mind whether you wanna float or you want to intervene!!!!!