Malaysiakini | 15 Jul, 10 6:19pm
Prime Minister Najib Abdul Razak’s administration has taken a politically risky manoeuvre by raising prices of three types of fossil fuels, sugar and cooking gas.
Both RON95 and RON97 grade petrol and diesel prices will be raised by RM0.05 per litre, while liquified petroluem gas (LPG) will be raised by RM0.10 per kilogramme.
Sugar prices will be raised by RM0.25 per kg.
All price increases will take effect from midnight tonight.
The breakdown of the new prices are:
- RON 95 grade petrol – RM1.85 per litre
- RON 97 grade petrol – RM2.10 per litre
- Diesel – RM1.75 per litre
- White refined coarse granulated sugar – RM1.90 per kg
- Liquified petroluem gas – RM1.85 per kg
For cooking gas: (each cylinder)
- 10kg – from RM17.50 to RM18.50, RM1.00 hike
- 12kg – from RM21.00 to RM22.20, RM1.20 hike
- 14kg – from RM24.50 to RM25.90, RM1.40 hike
It is learned that the Prime Minister’s Department intends to regulate the prices of RON 97 through a managed float mechanism.
Prices would then be adjusted monthly according to international oil prices.
Subsidy reduction plan
The statement added that the adjustment is the first part of the government’s plans to reduce subsidies for essential goods as proposed by the Performance and Delivery Unit (Pemandu).
Pemandu, a unit established under the Prime Minister’s Department, had warned that the Malaysia may face bankruptcy by 2019 should subsidies not be reduced.
Idris Jala, Pemandu’s chief executive officer, said that Malaysia risk becoming like Greece, which is now debt-ridden.
The Najib-administration had been working hard on its charm offensive to sell the necessity for subsidy reductions.
However, critics said forcing consumers to tighten their belts without the government undergoing an austerity drive was meaningless.
It must also be noted that this is the second time the federal government had increased sugar prices. On Jan 1, prices were increased by RM0.20 per kg.
#1 by ReformMalaysia on Friday, 16 July 2010 - 6:22 pm
There are many more subsidy cuts in the pipeline…….. Portably there will be a price increase of 5 sen per litre of petrol/diesel every 4 months…….. Najib will do it a way that like ‘the boiling frog story’………The premise is that if a frog is placed in boiling water, it will jump out, but if it is placed in cold water that is slowly heated, it will not perceive the danger and will be cooked to death…
Previous PM -Badawi did it drastically …and received a instant backlash……. Now Najib with APCO as consultant….. will do in a different way….. But in the end , the people are still the one that will suffer the most (but Najib’s rhetorics that “people first” will doing the magic in consoling the Kampung/rural folks/illiterates to continue to support BN)
#2 by Airbus380 on Friday, 16 July 2010 - 7:43 pm
Folks, I think it is rather easily “rob” money from the rakyat by imposing a tax call “BREATHING TAX”, meaning every breath you take the government will charge due to environmental concern on huge amount of carbon dioxide being released, or a “FARTING TAX” also can put into consideration. This will be the fastest way to make tons of money in order to settle the debts or bonds the government will have to carry up on their shoulder for making dumpful decision on those White Elephant projects.
#3 by Godfather on Friday, 16 July 2010 - 8:30 pm
Najib’s spinmeisters are now telling the mainstream press not to use the words “price hike”. Instead the allowed terms are “price adjustments” and “subsidy cuts”. Some pro-Najib bloggers are even comparing Najib’s “gentle” move to Badawi’s sudden and big price hikes a few years ago.
Whatever you call it, Najib makes no mention of cuts in unnecessary expenditure or moves to plug the leakages, and that is really upsetting the Malays. PR, the door is open for you guys to preach to the rural Malays….they are now much more willing to listen to alternatives.
#4 by yhsiew on Friday, 16 July 2010 - 8:45 pm
At last, Najib has tacitly admitted that the country is on the way to bankruptcy if his government does not reduce subsidies for essential items.
#5 by yhsiew on Friday, 16 July 2010 - 9:38 pm
A cup of teh tarik will only increase by 1.55 sen – Koh Tsu Koon should stop day-dreaming!
#6 by steven chan on Saturday, 17 July 2010 - 8:05 am
Whatever way they call it the fact remains that the petrol, gas and sugar have hiked . What if its the other way round? Najib will proudly and happily announce they have been downed. Just like they always announce that the crime rate has been downed and never say they are up. If they are down how is that every day we hear of robberies, thefts, rapes happening in broad daylight increasing everywhere.The ministers and all their stoggies are not affected because they have bodyguards and outriders to protect them. They never cared for the rakyat and yet they cheat the rakyat of the truth! Change the BN for a safer place to stay! Vote for PR!
#7 by k1980 on Saturday, 17 July 2010 - 10:29 am
Apart from “BREATHING TAX”, jib can also introduce a new tax called “Defecating/Peeing Tax”, whereby each and every citizen has to pay RM1 each time he/she answers the call of nature.
28 million people x 10 times a day = RM280 million a day!
#8 by PoliticoKat on Saturday, 17 July 2010 - 1:33 pm
WE are told that this move will save the nation about RM750 million a year.
Right and they think that will help?
The country has wasted RM12.5 billion on PKFZ. We will spend RM4.8 billion on the second Penang bridge (which started out at RM2.7 billion).
It is like selling blood to save RM10 and then going out and spending RM100. Who are they trying to fool?
#9 by Indran on Saturday, 17 July 2010 - 9:19 pm
It is ridiculous when it was highlighted in the papers about the actual price increase will less than one cent. Let me reproduce these numbers for our collective amusement.
Roti Canai: RM 0.80 –> RM 0.8024
Teh Tarik: RM 1.00 –> RM 1.003
Nasi Lemak: RM 1.50 –> 1.5045
and so on.
This is a government who is able to carry out budgeting for its “rakyat” in the thousandth place but not able to recover even one thousandth of the RM12.5 billion? MACC, pls call Mr Harry Markopolos, the Greek geek who can save One Malaysia from the chorus of “goat songs” we hear on a daily basis.
#10 by PoliticoKat on Sunday, 18 July 2010 - 7:01 am
Done that. It is called the monthly Indah water bill. A charge for absolute nothing. THey even build they water treatment plants upstream of our water intakes. So the cycle is complete. One better than Singapore’s New Water.
#11 by Cinapek on Sunday, 18 July 2010 - 5:06 pm
Rationale behind the timing of this move is clearly:
1) Coffers are running desperately dry and cannot wait any longer
2) Better to announce the cut now and allow time to desensitize the people for the next GE. Any delays will mean announcing the cuts too close to the GE and this could blow up in their faces like the fuel subsidy cut in July 2007 that affected the outcome of the March 2008 GE.
This means GE will not happen over the next 6 months at least.
#12 by newchief on Monday, 19 July 2010 - 10:34 am
subsidy rationing ??? hahaha…najib has in fact, ACTUALLY HELP PK by making a road for them to putrajaya in the next election !!!
but 1st, pk should do these :
1) legalised pk officially because if not, bn will drug the courts to deem pk as an illegal entity and thus cannot rule malaysia !!!!
2) promise what the rakyat will get if pk comes to power … eg. fuel cost reduced, no gst, language freedom of choice on education, etc
3) ensure to setup committee to review all previous suspected corrupt projects by bn
4) confiscate all corrupted personels’ properties and cash to be divert back to projects for the rakyat and cash for the elderly and handicapped or less fortunate people.
5) imprison and scarp all benefits of all who twist the human rights and make a mockery of the laws like the judges,polis,ag,perak speaker and mb and not forgetting the kataks also … confiscate their estates too !!! make them do community works like cleaning the streets and clogged drains
6) give all surplus of confiscated estates and cash for rakyat’s projects like building hospitals, schools, better roads and drainage and most importantly, give monthly allowances to the elderly, the handicapped and the less fortunate !!!
with the above simple points, i’m very sure the rakyat will give pk a 5-year trial run and see what happens !!!
#13 by on cheng on Monday, 19 July 2010 - 6:38 pm
Govt should re introduce 1 sen n may be also 2 sen coin for small purchases, and force mamak stalls etc to increase if any, just 1 sen or 2 sen per cup of tea etc