Last minute announcement of subsidy rationalisation to prevent traders increasing price many times – Rafizi

Last minute announcement of subsidy rationalisation to prevent traders increasing price many times – Rafizi

The government’s practice of last minute or sudden announcements when it comes to subsidy rationalisation is to prevent traders from hiking prices of goods ‘many times over’, economy minister Rafizi Ramli said. Conversely, any advance notice will result in traders taking advantage of the situation, he added.

“We have to balance the effect if the signal is given earlier, because the problem is that the increase in the price is set by the traders. If, for example, it has been announced earlier, it will cause the increase in the price of the item to happen many times and that is why the government’s decision is better made when it has been completed at the government level,” Rafizi told parliament today, reported by Malay Mail.

“That will reduce the risk of the prices going up many times over,” the Pandan MP said.

Rafizi was referring to the sudden announcement of the increase in diesel pump prices, as part of the diesel subsidy rationalisation programme. On May 21, PM Datuk Seri Anwar Ibrahim announced that the cabinet has approved the programme, which is expected to save the government around RM4 billion a year.

Last minute announcement of subsidy rationalisation to prevent traders increasing price many times – Rafizi

The PM did not mention dates, but on June 9, finance minister II Datuk Seri Amir Hamzah Azizan announced that the pump price of diesel in Peninsula Malaysia would go up by 56% to RM3.35 per litre on June 10.

Expect the same pattern of announcement for the removal of blanket subsidy for RON 95 petrol, which is expected by many to happen this year.

Last month, when asked if the move will be implemented this year with a pre-announced timetable, Rafizi said that the government is keeping its cards close to its chest in the same way it did with diesel. “We did surprise everyone with diesel, and I think everyone is up for another surprise,” he told Bloomberg on the sidelines of the World Economic Forum’s summer gathering in Dalian, China.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • So traders won’t increase price with last minute announcement?

    Like or Dislike: Thumb up 48 Thumb down 2
    • Sohai on Jul 11, 2024 at 6:59 pm

      Yes… smart no more price increased.

      Like or Dislike: Thumb up 4 Thumb down 7
      • Dah Menang Semua on Jul 12, 2024 at 8:03 am

        Lucky removing the subsidy
        Of the widely used diesel
        In commercial didn’t
        Trigger price increased yet
        (At least I don’t feel any)
        Well done!!

        Like or Dislike: Thumb up 1 Thumb down 5
  • stranger on Jul 11, 2024 at 4:21 pm

    Not many times.but one time higher increase rate. Genius lah abang jie ni.

    Like or Dislike: Thumb up 34 Thumb down 0
  • Why So Serious on Jul 11, 2024 at 4:31 pm

    Yes because like he said in Sg Bakap kempen he is all about sudden surprises, but his surprises turn out to be horror nightmare kind. Not sure if Msians are still willing to be hack & slash by this PH Gomen.

    Like or Dislike: Thumb up 41 Thumb down 1
    • A one term Madani...A clear and present danger on Jul 11, 2024 at 6:50 pm

      At coming GE,if one of the coalition partners pull out of Madani,lets give this dude and co a last minute surprise..he is so adamant in using his surprise..so can we voters.
      We cant be given too many surprises..already many of our savings are wiped out during the pandemic.
      Menteris have pension,perks,drivers,Alphards,Camrys,hefty emoluments.We only have the bare minimum to survive.
      The Rishi Sunak surprise extinction may arrive sooner, not later.

      Like or Dislike: Thumb up 41 Thumb down 1
      • Dah Menang Semua on Jul 12, 2024 at 8:03 am

        Lucky removing the subsidy
        Of the widely used diesel
        In commercial didn’t
        Trigger price increased yet
        (At least I don’t feel any)
        Well done!!

        Like or Dislike: Thumb up 0 Thumb down 4
    • Subsidy still there what on Jul 14, 2024 at 3:39 pm

      The subsidy for diesel cars is still there, why don’t you claim your RM 200? If you tak layak, means income already above RM 100k kan, complain what?

      Would you prefer that government continue spend billions more to benefit diesel smuggler every year? You know those are our monies right? The monies saved can build more MRT LRT.

      Think properly before comment la. You want reform, this is reform. Change is uncomfortable, deal with it.

      Like or Dislike: Thumb up 0 Thumb down 2
  • Menteri formula bahlol on Jul 11, 2024 at 4:39 pm

    2 x RM0.50 = 5 x RM0.20

    Like or Dislike: Thumb up 23 Thumb down 2
  • Sohai on Jul 11, 2024 at 5:00 pm

    I don’t like surprises… especially from someone I elected.

    Like or Dislike: Thumb up 46 Thumb down 0
  • Ben Yap on Jul 11, 2024 at 5:05 pm

    First time Rafizi live in Malaysia is it? whether last minute announcement or not, traders is going to increase price anyway. your formula isn’t working.

    Well-loved. Like or Dislike: Thumb up 51 Thumb down 1
  • That’s why u don’t fit to be the minister who only sit inside office working in formula

    Like or Dislike: Thumb up 29 Thumb down 0
  • Ajibkor complaining satay price increase on Jul 11, 2024 at 7:00 pm

    Your Excellency Ben Yap
    What formula Rafizi has ?
    He forgot the recent Sg Bakap by elections.A total backlash.
    Regime change is a frightening word.
    PKR MP Pasir Gudang said,PMX has less than 3 years to follow Rishi Sunak’s footsteps.
    It may even be half of that timeframe.

    Like or Dislike: Thumb up 19 Thumb down 1
  • Orang yang bahalol sahaja, sentiasa menganggap orang lain bahalol

    Like or Dislike: Thumb up 24 Thumb down 0
  • I have a fantastic formula too;

    10 things spoken = 15 lies told.

    :P

    Like or Dislike: Thumb up 35 Thumb down 0
  • Facebook on Jul 11, 2024 at 7:55 pm

    where is the RM1.50 ron95 this sohai promised?

    Like or Dislike: Thumb up 33 Thumb down 1
  • ROTI CANAI on Jul 11, 2024 at 8:03 pm

    You mabuk ke

    Like or Dislike: Thumb up 21 Thumb down 0
  • taisohai on Jul 11, 2024 at 8:26 pm

    we dont want to listen to all this bullshit and excuses…

    what we want to hear is leakages and corruption being tackled? fast action and not talk talk, many big snakes still roaming free…

    Like or Dislike: Thumb up 21 Thumb down 0
  • DonkeyKong on Jul 11, 2024 at 9:56 pm

    Guys, let’s not focus so much hatred on the Formula King.

    Let’s direct it to the more deserving culprits – his idiot constituents that voted him into power!

    Like or Dislike: Thumb up 24 Thumb down 2
    • History Bender on Jul 14, 2024 at 4:28 pm

      That would put the millions of PH voters in the same basket case then, is there such thing in history got millions of idiot voters?

      Like or Dislike: Thumb up 2 Thumb down 0
  • there is no cure for stupidity.

    Like or Dislike: Thumb up 3 Thumb down 0
  • ThePolygon on Jul 12, 2024 at 8:22 am

    I say why not just put in balloons in the background when doing the announcement.

    Like or Dislike: Thumb up 3 Thumb down 0
 

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