The increase is a proactive step for fiscal consolidation and economic survival.
GEORGE TOWN: A NGO has argued that the fuel price hike of RM 0.20 for RON95 petrol and diesel was to save the country’s economy.
Sensible and Ethical Malaysians United Team (Semut) president Huan Cheng Guan attributed the fuel price hike partly on the current Syrian conflict, stressing that global oil price can reach US$150 per barrel now.
He also pointed out that Malaysia was officially not an oil exporting country as 90% of its production was for domestic use.
He argued that the fuel price hike was the government’s proactive step for fiscal consolidation to increase market confidence, once fiscal deficit had been reduced.
“It’s not political issue but about Malaysia’s economic status and survival,” said Huan in a statement here today.
He claimed that the Putrajaya administration had to cut subsidies and increase fuel price to avoid the country from being punished by international rating agencies and foreign investors for failing to tackle structural problems, such as high rate of subsidies.
The federal government has allocated RM24.8 billion this year on fuel subsidies and the Prime Minister Najib Abdul Razak has announced that the country would save RM1.1 billion until end of the year with the recent hike
The government would save up to RM3.3 billion per annum while it still subsidises 63 sen per liter for RON95 petrol and 80 sen per liter for diesel.
The government’s target is to reduce Malaysian’s fiscal deficit to 3% by 2015.
Huan pointed out that the petrol subsidies were meant for the poor and low-income group, citing the government’s plan to increase its BR1M budget next year. This year’s budget was RM2.9 billion.
He said government had subsidised between RM25 billion and RM30 billion to allow Malaysians and foreigners to enjoy cheaper fuel, gas, and water.
But, he said such subsidies to lower prices of goods and services were also enjoyed by undeserving rich Malaysians and foreigners.
He also claimed that the main beneficiaries of subsidised diesel were owners of Vietnamese and Thai fishing vessels, and the Malaysian fishermen who sell their subsidised allocation to them.
He said the subsidy reduction was also to discourage smugglers from Thailand and Indonesia.
“Hence reducing subsidy is a vital move in the right direction to arrest the leakages from country’s income.
“If the government did not take this move, the other alternative would be to increase taxes,” said Huan.
Global fuel prices a factor
While people grumbled about the 20 sen fuel price hike, he said many have forgotten that the pump price has doubled in 15 years while world oil prices have gone up 10 times in the same period.
He noted that Petronas’ profits were also down and the national oil company had warned Putrajaya that it cannot continue subsidising gas for industrial use.
“The move for the reduction in subsidies shows Prime Minister Najib is a realist and ready to forego populist moves for the well-being of the nation,” said Huan.
He however, admitted the fuel increase had infuriated many citizens, especially those living in poverty and squeezed by ever growing cost of living.
But he urged the people to verify the facts and dispel myths spun by Pakatan Rakyat leaders and their cyber mongers whose sole purpose is to stir hatred against Barisan Nasional.
He said that among the myths prevalent among people were that the price increase was due to corruption and payback for voting BN to power; and price increase would cause inflation.
He further said that inflation rate was under control and there were fiscal and monetary policies in place to control inflation and its impact on the economy.
“It is all up to us to adopt the correct perspective of the situation with the right facts and not fall prey to senseless propaganda.
“As it stands, the Prime Minister and his team are on the right track,” said Huan.
GEORGE TOWN: A NGO has argued that the fuel price hike of RM 0.20 for RON95 petrol and diesel was to save the country’s economy.Sensible and Ethical Malaysians United Team (Semut) president Huan Cheng Guan attributed the fuel price hike partly on the current Syrian conflict, stressing that global oil price can reach US$150 per barrel now.
He also pointed out that Malaysia was officially not an oil exporting country as 90% of its production was for domestic use.
He argued that the fuel price hike was the government’s proactive step for fiscal consolidation to increase market confidence, once fiscal deficit had been reduced.
“It’s not political issue but about Malaysia’s economic status and survival,” said Huan in a statement here today.
He claimed that the Putrajaya administration had to cut subsidies and increase fuel price to avoid the country from being punished by international rating agencies and foreign investors for failing to tackle structural problems, such as high rate of subsidies.
The federal government has allocated RM24.8 billion this year on fuel subsidies and the Prime Minister Najib Abdul Razak has announced that the country would save RM1.1 billion until end of the year with the recent hike
The government would save up to RM3.3 billion per annum while it still subsidises 63 sen per liter for RON95 petrol and 80 sen per liter for diesel.
The government’s target is to reduce Malaysian’s fiscal deficit to 3% by 2015.
Huan pointed out that the petrol subsidies were meant for the poor and low-income group, citing the government’s plan to increase its BR1M budget next year. This year’s budget was RM2.9 billion.
He said government had subsidised between RM25 billion and RM30 billion to allow Malaysians and foreigners to enjoy cheaper fuel, gas, and water.
But, he said such subsidies to lower prices of goods and services were also enjoyed by undeserving rich Malaysians and foreigners.
He also claimed that the main beneficiaries of subsidised diesel were owners of Vietnamese and Thai fishing vessels, and the Malaysian fishermen who sell their subsidised allocation to them.
He said the subsidy reduction was also to discourage smugglers from Thailand and Indonesia.
“Hence reducing subsidy is a vital move in the right direction to arrest the leakages from country’s income.
“If the government did not take this move, the other alternative would be to increase taxes,” said Huan.
Global fuel prices a factor
While people grumbled about the 20 sen fuel price hike, he said many have forgotten that the pump price has doubled in 15 years while world oil prices have gone up 10 times in the same period.
He noted that Petronas’ profits were also down and the national oil company had warned Putrajaya that it cannot continue subsidising gas for industrial use.
“The move for the reduction in subsidies shows Prime Minister Najib is a realist and ready to forego populist moves for the well-being of the nation,” said Huan.
He however, admitted the fuel increase had infuriated many citizens, especially those living in poverty and squeezed by ever growing cost of living.
But he urged the people to verify the facts and dispel myths spun by Pakatan Rakyat leaders and their cyber mongers whose sole purpose is to stir hatred against Barisan Nasional.
He said that among the myths prevalent among people were that the price increase was due to corruption and payback for voting BN to power; and price increase would cause inflation.
He further said that inflation rate was under control and there were fiscal and monetary policies in place to control inflation and its impact on the economy.
“It is all up to us to adopt the correct perspective of the situation with the right facts and not fall prey to senseless propaganda.
“As it stands, the Prime Minister and his team are on the right track,” said Huan.
No comments:
Post a Comment