For the past month, two questions have obsessed Malaysians.
The first has been answered, viz: whether Datuk Seri Abdullah Ahmad Badawi will bow down to pressures from inside Umno for a quick exit as Prime Minister by announcing that he would not defend the post of Umno President in the forthcoming Umno General Assembly.
The second question, still awaiting answer, is whether the government could respond nimbly to the rapid fall in world crude prices to undo its unconscionable 41% hike in fuel prices in June which had kicked off a relentless inflationary spiral hitting a 27-year high.
When the price of petrol in Malaysia was hiked by 41% by 78 sen from RM1.92 to RM2.70 a litre, the price of world crude oil was around US$140 per barrel.
World oil prices have plummeted to a one-year low below US$78 a barrel, but the price of petrol is RM2.45 or reduced by a mere 25 sen in two reductions.
This is clearly unacceptable and the situation is not made any more palatable with the statement yesterday by the Minister for Domestic Trade and Consumers Affairs Datuk Seri Shahrir Samad of the possibility that the price of petrol reverting to the old price of RM1.92 a litre if world crude oil price continues to dip below US$72 per barrel.
What Malaysians want is immediate action.
Last night, at the DAP Rasah dinner, I had called on Deputy Prime Minister, Datuk Seri Najib Razak, who has become the Finance Minister, to present a revised 2009 Budget when Parliament reconvenes on Monday, as the 2009 Budget presented by Datuk Seri Abdullah Ahmad Badawi on August 29 had been overtaken by economic events in the past six weeks – in particular the looming financial meltdown which has already precipitated a US$700 billion bailout , compared to the 1929 Great Depression and wiped out RM57 billion market capitalisation from the local bourse this week.
Najib should suspend all Umno commitments for the rest of the weekend and “burn midnight oil” to table a revised 2009 Budget in Parliament on Monday , with the centrepiece on the strategy to enable Malaysia to tide through the financial maelstrom but also incorporating new lowered pricing for petrol as world crude oil has plunged below US$78 per barrel.
This is Najib’s first challenge as Finance Minister – to demonstrate that he is on top of his new task as Finance Minister and not be accused of being a latter-day Nero “fiddling while Rome burns”.
#1 by bongkk on Sunday, 12 October 2008 - 11:43 am
When it comes to consumers prices msia is famous for “what goes up never comes down”. Bringing down the fuel price will benefit only vehicle owners temporarily. DOnt expect prices for consumer items to come down with it. But do expect consumer prices to go up when the next round of fuel price increase comes around. I am no economic expert. WHat the bloody gomen need to do is to set a base line of crude oil price to work on. I reckon US80 is a good value. This way pump price can be buffered and stabilised for longer periods, maybe needed to be revised every 2-3 years. This will also stabilise consumer prices as as well. Believe me, i work for the Oil and gas industry. I know the oil firms budget their expenditures on only US20.
#2 by johnboy on Sunday, 12 October 2008 - 12:34 pm
YB,
I believe that the 2008 hike in the ELECTRICITY tariffs should also be reviewed.
We, Malaysians are so blessed compared to many Asian countries. Therefore, good governance is of paramount importance.
Most certainly, the PETROL pricing, ELECTRICITY tariffs and the recent 2009 BUDGET should be reviewed and revised – taking into account relevant considerations for the best position to be adopted for Malaysia and not to be based on political grounds.
#3 by imranj78 on Sunday, 12 October 2008 - 12:35 pm
bclee.
Did I mention anywhere that I strongly support ISA in its current form? No right? So your unsubstantiated claim that I am practising double standard is without any basis and totally slanderous. In my view, we still the ISA but in a revised form that strongly limits and curtails the duration of any detention without trial.
lakshy,
The method of calculating fuel pump prices is available in the open. I guess you want to be spoon fed with the formula? May I suggest you do some research through legitemate channels rather then making unsubstantiated claims on the use of `a secret formula’.
waterfrontcoolie,
Our subsidy mentality esp. on electricity and fuel makes it unattractive for any company to strongly invest in solar energy. Why invest in solar electricity when you can buy electricity from the grid at such subsidised prices? Similarly, who won’t ESSO, Shell etc invest in NGV? Because the subsidised NGV prices set by the government will make them loose their money. That’s why all fuel subsidies must go but it seems PR is more interested in getting votes rather then looking at the long term interest of the nation.
bongkk,
I am in the oil and gas industry as well but your claim that oil and gas firms budget their expenditures on only USD20/bbl crude price might be a true a decade ago, but it will no longer be realistic to maintain the same now.
#4 by madmix on Sunday, 12 October 2008 - 12:37 pm
A few thing have happed lately: Aussie dollar is now RM 2.3 or so. So make sure price of milk products, wheat based products, beef come down accordingly. What about transport costs for goods which have been hiked 30%?
#5 by bystander on Sunday, 12 October 2008 - 1:26 pm
yeah, why is rpk charged under sedition act? why didnt najib sue him under civil? take him to court and forced him to produce evidence. be man enough to fight him in court rather than hiding and using police to do his dirty work. [deleted]
#6 by bclee on Sunday, 12 October 2008 - 3:12 pm
“In my view, we still the ISA but in a revised form that strongly limits and curtails the duration of any detention without trial. “quote mranj78
what ? u still want to revised the so call ISA ha..a..lomak
how good you change it is still bad mah!
I think u also have a retarded mindset.
#7 by Anti_NEP on Sunday, 12 October 2008 - 4:45 pm
Damage already done. No matter how much the petrol price is decreased now, the prices of consumer goods will not be lowered. Only businessmen are making more money now. The coffee shop increased a cup of coffee by 20sen when Bodohwi announced 41% jumped in petrol price will not lower the his coffee price even the petrol price is lowered.
Be End has screwed up the country’s economy!!!!!
#8 by imranj78 on Sunday, 12 October 2008 - 4:55 pm
bclee,
I will not lower myself to your level and start name calling as you have done. Lets keep this debate healthy and constructive shall we?
I disagree that ISA cannot be revised. Infact it can be improved to focus on matters that truly threathen national security such as terrorism. Loopholes should be plugged to prevent its misuse and allowable duration for detention before trial be firmly limited. Similarly, authorization on the use of ISA should not rest on only on the PM or the Home Minister. Keep an open mind, understand the true purpose of ISA and be constructive. You will find that ISA can be turned into an act that can co-exist with principles of human right and justice. Do you think the governments of US and UK would have followed through with similar acts if it serves no purpose for the safety of their nations?
#9 by cinaindiamelayubersatu on Sunday, 12 October 2008 - 6:29 pm
turun ? mana boleh turun !!! rugi lah aku : dolla bin umno
#10 by cinaindiamelayubersatu on Sunday, 12 October 2008 - 6:32 pm
harga runcit C4 berapa hah ?
#11 by riversandlakes on Monday, 13 October 2008 - 10:37 am
We are all waiting for petrol prices to drop. Hey, government, you hear that? Petronas is our cookie jar, not yours!
#12 by Yee Siew Wah on Monday, 13 October 2008 - 12:56 pm
The sleepy flipflop lame duck guy listened to his stupid bum in the Domestic trade and consumer dept to increase the pump price by 78 sen in TWENTY FOUR HOURS. He thought he did a “great” job.
Now the crude has dropped below $90. What is that stupid bum adviser going to do??. Pretending or trying to delay so that they can milk more money from the rakyat??.
This bum has shown his true colours after becoming a minister in charge of Trade and Consumers affairs. He iscan be best described as worst than a chameleon.
#13 by richard.wong8 on Monday, 13 October 2008 - 1:50 pm
When price of crude oil increased, so did Tenaga Nasional Bhd! I wonder if Tenaga Nasional Bhd will lower it’s price now since crude oil has come down.
Don’t dream……for Tenaga Nasional Bhd, what goes up, never come down. :(
#14 by ahkok1982 on Monday, 13 October 2008 - 6:31 pm
what? only lower the price of petrol? talk about having low expectations… with nothing done now, i think most malaysians will lose their jobs and unemployment will be at an all time high. without jobs now, who cares about lower petrol prices.
the effect of higher petrol prices has taken effect. Higher food prices, higher, electricity prices, higher bus fares, higher train fares… you name it, it is more expensive now. If the price of petrol is cut down more, do you think that the prices of such things will also follow suit to go down? in your dreams!!!
a total overhaul is in place starting by cutting the head of the biggest leach in the country.