PM should seek Parliament approval on June 23 for hefty oil price increases


Ipoh’s protest :
Lim Kit Siang leading Perak's MPs and State Assemblymen and Women at Ipoh's Protest Protestor
KL’s protest :
 

Some hundred people, including DAP MP for Ipoh Barat, M. Kulasegaran, Perak State Assembly Speaker Sivakumar, Perak DAP State Excos Su Keong Siong, A. Sivanesan and Chen Fook Chye and DAP Perak Assembly members Leong Mee Meng (Jalong), Lim Pek Har (Menglembu), Ong Boon Piow (Tebing Tinggi) and Siva Subramanian (Buntong), together with representatives from trade unions and NGOs, gathered outside the Perak Federal Building this morning to fire the first salvo of protest on behalf of Malaysians at the hefty and unconscionable increase of oil prices yesterday.

The half-hour protest went off smoothly, with Kula, Su, Sivanesan, Chen and myself speaking briefly on the protest.

In Kuala Lumpur, a similar protest, attended by five DAP Federal Territory MPs (Dr. Tan Seng Giaw, Fong Kui Lun, Tan Kok Wai, Teresa Kok, Lim Lip Eng), Manogaran (MP – Teluk Intan) and Selangor DAP State Assemblywoman Jenice Lee Ying Ha (Teratai), was held at the Pudu Market, Jalan Pasar.

Excerpts of my remarks at the Ipoh Protest this morning:

The sudden hefty oil price increases – 40.6 per cent and 63.3 per cent increase in pump petrol price and diesel price respectively – creating a seven-hour nation-wide chaos is an outrage as it is most unconscionable, unjustifiable and deplorable reflecting poorly on good governance in Malaysia especially after ministerial undertaking that there would be no changes until August.

The introduction of annual cash rebate of RM625 to those who own cars of 2,000 cc and below, and pick-up trucks and jeeps of 2,500 cc and below, and cash rebate of RM150 a year for owners of motor-cycles of 250 cc and below, as well as road tax discounts, will not be able to fully cushion the low and middle-income Malaysians from the inflationary spiral which would be unleashed by the greatest hike in oil prices in the nation’s history.

Equally of concern will be the deterioration of the public safety index, with the expected worsening of the crime situation which has already become an endemic problem causing Malaysians, tourists and investors to fear for their personal safety, their loved ones and the safety of property as well!

The Prime Minister, Datuk Seri Abdullah Ahmad Badawi said yesterday:

“We cannot keep subsidising at the current rate. We must reduce wastage. If we can change our lifestyles, we will not suffer a terrible situation.”

However, the present government has no credibility in setting an example of “change of lifestyles” in eradicating the parasitic subsidy mentality as it has shown no political will to eliminate the rampant waste, extravagance, abuse of public funds, lack of accountability and corruption rife in the public sector, as illustrated by Malaysia’s worsening reputation on corruption whether nationally or internationally, the RM4.6 billion Port Klang Free Zone (PKFZ) bailout scandal, the lack of accountability for the Petronas billions, etc.

In the previous oil price increases in February 2006, the government promised radical improvements in the public transport system – but nothing has come out of it.

The Prime Minister and all the Cabinet Ministers owe Malaysians a full and acceptable explanation why they could not fully involve the Malaysian public in the restructuring of the fuel pricing system which is fair and equitable to the low and middle-income Malaysians and done in a competent , professional and accountable manner as to avoid the seven-hour nation-wide chaos yesterday.

Parliament, which ended its meeting last week and would meet again on 23rd June, should have been the forum to decide on the fuel pricing system which is fair, equitable and efficient.

Why was Parliament by-passed altogether by the Cabinet?

The first item of business of the forthcoming parliamentary meeting should be a motion to seek approval of Parliament for the hefty and unconscionable oil price increases yesterday. This motion should be moved by the Prime Minister, Datuk Seri Abdullah Ahmad Badawi himself.

  1. #1 by taxpayer on Friday, 6 June 2008 - 7:54 pm

    Having got the petrol subsidy monies, many half past six projects and many white elephants will mushroom all over the countries. Previously, the monies came from the stock market. The stock market is neither dead nor alive. Therefore, the monies have to come from these contracts. Guess who will get all these contracts? This is the practice for more than 20 years. You expect any change? This is the risk he has to take.

  2. #2 by lopez on Friday, 6 June 2008 - 8:17 pm

    As expected all local bankers are fully owned or substantial controlled, by wannabe bankers , u can see this happening from UMBC.

    So how grand it is , all under controlled , wel under the counter controlled.
    Even debt management becomes a lucrative business , only in bolihland, we have the expereinced

    So price increase , policy makers decision makers , who the hell are these people taking us to hooolland,
    If you cant afford , then run your live prudently lah, it is not the policies made it is you to blame , u selected and give them the mandate of doom.

    What is the worth of our ringgit . I would like to ask?

    Fuel cost is the primer, the avalanche has started….stop the rot …demand show cause letters now ..

  3. #3 by Anak_Penang on Friday, 6 June 2008 - 8:48 pm

    Describe your feeling on the latest increase in fuel prices …

    sonofpenang.blogspot.com

  4. #4 by goldenscreen on Friday, 6 June 2008 - 10:56 pm

    Can somebody please explain to me how the government came out with their figures? According to the government the fuel subsidy would cost us RM56 billion this year. By increasing the price of fuel by RM0.78, they would save RM14 billion in subsidies. The same government also said that the price of fuel is now only RM0.30 below the market rate.

    Increase by RM0.78 (RM1.92 –> RM2.70)
    *******************************
    Subsidy Before Savings = RM56 billion
    Savings = RM14 billion
    Subsidy After Savings = RM42 billion

    Now comes the magic confusing part!!

    Increase by RM0.30 (RM2.70 –< RM3.00 [market price])
    ******************************************
    Subsidy Before Savings = RM42 billion
    Savings = RM42 billion ?????!?!?!
    Subsidy After Savings = RM0.00 (since there is no more subsidy aka fuel at market price).

    I can’t understand how increasing by RM0.78 saves us RM14 billion, then increase by another RM0.30 saves us RM42 billion? The maths just ain’t right..can anybody offer an explanation?

  5. #5 by 9to5 on Friday, 6 June 2008 - 11:17 pm

    Getting rid of the subsidy system is a wise thing to do. In fact, it should be done decades ago. The subsidy system is one of the many things that have been mismanaged by the incompetent BN government for the past 3-4 decades.

    Malaysia is blessed with many natural resources. For the past 50 years and with the current high prices of petroleum, natural resources such as palm oil, rubber, tin, aquaculture, forestry products, etc, Malaysia’s coffer should be brimming with money.

    The money could have been used to build highways, schools for every race, reduce tariffs on cars including national cars, reduce prices of utilities, road taxes, personal income taxes, food, school fees, etc.

    In a well managed economy like this, there is no need for subsidy.

    But instead of using the nation’s coffer to build and provide roads, highways, schools, reduce car tariffs, cheap electricity, cheap food, school fees, etc, the BN government splurged on wastages and non-prioritised projects. Lopsided contracts were given to cronies to squeeze the citizens even more.

    That’s why the subsidy system came into being – to relieve the financial burden of the citizens. The subsidy system in Malaysia exists only because of the deeply entrenched crony system – it goes hand in hand!

    If the BN government want to get rid of the subsidy system of oil it must also get rid of the crony system. It cannot just get rid of the subsidy system but retain the blood sucking crony system with escalating prices on toll (toll concessionaires), electricity (TNB), water (Syabas), telephone (Telekom), rice & flour (Bernas), Astro, excise duties on cars (Proton).

    It is not only wrong but it is a double whammy on the citizens! The citizens have to pay high prices for oil and for daily basic necessities for tolls, electricity, communication, entertainment and foodstuffs.

    It’s like throwing the citizens to the wolves!

    Look at the obscene amount of profits made year after year by these toll concessionaires, TNB, Water Authorities, Telekom, Astro, Bernas, Proton, etc, by milking the citizens who have no choice but to use the services of these monopolistic or oligopolistic companies!

    The subsidy was there in the first place to protect the poor citizens because of the secretive, lopsided agreements signed by the corrupt BN government with their cronies.

    Now, the subsidy which is the only protection left for the citizens is removed without dismantling the blood sucking crony system by reducing the prices of tolls, electricity, water, foodstuffs, cars, etc, is it not the BN government is abandoning the citizens to be eaten by wolves?

  6. #6 by choonchoy on Friday, 6 June 2008 - 11:51 pm

    goldenscreen
    Increase by RM0.78 (RM1.92 –> RM2.70)
    *******************************
    Subsidy Before Savings = RM56 billion
    Savings = RM14 billion
    Subsidy After Savings = RM42 billion

    Now comes the magic confusing part!!

    Increase by RM0.30 (RM2.70 –< RM3.00 [market price])
    ******************************************
    Subsidy Before Savings = RM42 billion
    Savings = RM42 billion ?????!?!?!
    Subsidy After Savings = RM0.00 (since there is no more subsidy aka fuel at market price).

    ————————————————————-

    AAB failed stats, he can’t do math. Anything complicated will cause his tiny brain to go in to a fit and shut down zzzzzzzz. He has been caught sleeping on the job…..guess what was he doing during lectures? AAB doesn’t have much room for a big brain when it is located on the other head. :0)

  7. #7 by NG on Saturday, 7 June 2008 - 12:03 am

    what a stupid idea to give rebate base on the cc of a car.IDIOT!!!
    a old volvo with more then 2000cc may cost only rm 20000.
    a new toyota altis cost more then rm 100,000.tell me which car between this two belongs to a rich guy??really a IDIOT!!! now i believe people said if you want to know the differences of our PM n his bunch of “boleh” minister to “Singa” island minister, you just look at where they graduated from n compare with the “singa” island Minister.

  8. #8 by NG on Saturday, 7 June 2008 - 12:20 am

    a friend of mine is a surgeon in a goverment hospital.with his monthly salary around rm 5-6k ,he got 3 childrens and his wife is a housewive. with the increase of fuel price and the chain reactions cause by it,he is going to private or migrate to singapore. he just summit his resignation today,even a guy with this monthly income is affecting by this. just think what happen to those low income people.hopeless P-A-K…..get your f#*& ing @ss out of the PUKIJAYA.b4 a giant tsunami send you out of the boleh land!!!

  9. #9 by deathlings on Saturday, 7 June 2008 - 12:25 am

    anyway ppl, crude oil just reached USD 134 again up more than 5% today, guess it won’t be long before the PM will be using his favourite phrase “change your lifestlye” again.

    With crude oil at that rate, petrol is at about 3.50 per litre, with the 30 cents that Government promise, we in for another price hike possibly within the 2months period. Soon we will all be turning back 30years in time and all will be cycling to work.

  10. #10 by monkeyface on Saturday, 7 June 2008 - 2:14 am

    Since when did Cabinet need the permission of any one or entity to make decisions? As far as I know they do whatever they fancy, and care not for the people but their own.

    Interestingly we have a government who despite freely and irresponsibly sending tax dollars tells its people to change their already obscure lifestyle, pushing its very people to the brink of collapse. I wonder, in the 4 hours of ‘brainstorming’ did they ever once consider the chain of events that will see the increase in cost for a majority of goods and services? Or was the decision made on a toss of a coin?

    Interestingly, ministers are allocated allowances for petrol and various cost of living needs. Ministers are the servants of the nation, instead I would think these very servants should be stripped of these expense allowances as they have not earned their keep by simply mismanaging resources and tax monies collected. I think the country should be run like a corporation and the executives receive their bonuses if they perform and not otherwise. So, PM can please explain yourself?

    The people of Malaysia ask not for subsidies, however we ask for the Government to not waste resources like they frequently do. Time for the Government of Malaysia to tighten up their belts and change their lifestyle!

  11. #11 by Jeffrey on Saturday, 7 June 2008 - 9:29 am

    9to5 per posting Yesterday at 23: 17.40 says it right – the subsidy is the morphine for the cancer of a corrupt feudal political culture : here the painkiller has been taken away, and debate has focused on the inherit merits or demerits of morphine as a palliative or pancea of ills – without debate as to how the cancer is being treated – or that it may be treatable – this is folly!

    There should be an incisive surgery to remove the tumour if the patient, Malaysia, is to have any chance.

  12. #12 by taxpayer on Saturday, 7 June 2008 - 9:30 am

    The subsidy has to be reduced now. Why? Because in the not too distant future someone will be leaving. It is his golden handshake.

  13. #13 by Jeffrey on Saturday, 7 June 2008 - 9:30 am

    ///inherent merits or demerits///-correction

  14. #14 by Jeffrey on Saturday, 7 June 2008 - 9:32 am

    Corection of typo error – “inherent” instead of “inherit” in relation to merits or demerits of morphine.

  15. #15 by Ronson on Saturday, 7 June 2008 - 9:39 am

    Venezuelans pay a heavy price for cheap oil -23 May 08 (AlJazeera)

    While motorists around the world are feeling the pain at gas pumps, Venezuelan drivers are enjoying the cheapest petrol in the world.

    However, it’s not all good news, as Al Jazeera’s Lucrecia Franco explains from Caracas.

    http://youtube.com/watch?v=hwxXN4NM8fc

  16. #16 by rainbowseahorse on Saturday, 7 June 2008 - 1:31 pm

    Can’t we rakyat take our problem with our present government to the Agong?
    I mean, he being the protector of us rakyat and we having to respect him and all the other Sultans, TYT, etc; Does the Agong have any power AT ALL to help us Rakyat get rid of a corrupted government?

  17. #17 by Hendric1421 on Saturday, 7 June 2008 - 3:11 pm

    I would like to CONGRATULATE all those who brilliantly voted for BN and that now you all got the biggest gift from BN WHICH is Inflation. Even their leaders is kind hearted and SINCERELY give tips to you all to change your lifestyle and backward it so you can be happier. WHAT A BULLSHIT…

  18. #18 by rainbowseahorse on Saturday, 7 June 2008 - 6:59 pm

    Hendric1421, I think it should be “…the biggest gift from BN WHICH is making every Malaysians, regardless of race, multi-millionairs and billionairs…Just like the Indonesians!”

  19. #19 by ReformMalaysia on Sunday, 8 June 2008 - 1:30 pm

    ((NG Says:
    Yesterday at 00: 20.24

    a friend of mine is a surgeon in a goverment hospital.with his monthly salary around rm 5-6k ,he got 3 childrens and his wife is a housewive. with the increase of fuel price and the chain reactions cause by it,he is going to private or migrate to singapore. he just summit his resignation today,even a guy with this monthly income is affecting by this))

    now lets look at fate the group of people which the government had denied the request for minimum salary of RM1,000 recently.

    BEFORE FUEL INCREASE…..
    2 MEALS A DAY, NO TV, NO ELECTRICITY

    AFTER FUEL PRICE INCREASE……..
    1 MEAL IN 3 DAYS
    (PLAIN RICE WITH SomE VEGETABLES -CAN’T afford meat and fish)

  20. #20 by whitecoffee on Sunday, 8 June 2008 - 3:17 pm

    There is more than one issue here. Local and global. What if we now have a new government ? Can we solve the oil price problem? We all know the crude price is still going up, and up. Do we know who dictates, or manipulates the crude oil price? We have been very fast in protesting against the Denmark government for the cartoons. We have also in the past, demonstrated against the US, and even called for boycotts of US products. Malaysians certainly have another battle to fight. Check the oil price trend at http://www.wtrg.com/prices.htm

  21. #21 by pjboy on Monday, 9 June 2008 - 12:15 am

    The rebate system is a joke & insult to our intelligence. It is a simple & kids-play system. How do we know if the rebate do not go to the same person multiplied times?

    RM 625 can only buy 231 ltr petrol (or under 4 full tank for 60 ltr tank) & 242 ltr diesel (or around 3 full tank for 80 ltr tank).

    Furthermore, what is RM 625 to someone driving new BMW 320-series. For someone who owns 10x BMW 320-Series, will get RM 6250 rebate.

    As for motorbikes, the RM 150 rebate (approx. 55 ltr of fuel) will probably last them 2-3 months just to get to & fro work.

    The rebate system should be incorported into the personal or corporate income tax. This is so that the person who owns 10x BMW 320 do not get RM 6250 rebate & the poor guy who owns 1 kap-chai gets a better rebate than just RM 150/year. Even 10x kap chai only RM 1500, 4x less compared to RM 6250. The type of vehicle owned must be declared in the income tax form.

    We all know well who pays tax & who doesn’t !!! So, why do those who own 10x BMW 320s & don’t pay tax, get away with rebate or fuel-subsidy??? Just a an idea to explore. The current system is ridiculous & still open to smuggling of precious resource being sold illegally.

  22. #22 by rainbowseahorse on Monday, 9 June 2008 - 12:21 pm

    pjboy, I know and agree that giving out rebates via road tax renewal which can be exploited by wealthy individuals. But as pointed out somewhere, giving rebates based on income tax will not help those in the lower income group as most of them do not even have income tax return form.

    I think however the government tries to give back some form of rebates to the lower income, the system will be subjected to abuses in one form or another.

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