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Opposition stunned by massive fuel price hike PDF Print
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Thursday, 05 June 2008 10:02

KUALA LUMPUR, June 5 ─ Prime Minister Datuk Seri Abdullah Ahmad Badawi's announcement of a fuel price hike yesterday was met with great consternation and dismay by Opposition members.

Shah Alam MP Khalid Abdul Samad, from PAS, did not mince his words. Calling the government a "hopeless bunch", he expressed his disappointment with the Cabinet's new subsidy mechanism.

"I'm stunned. I was expecting a better deal. I think it's very sad, very disappointing. I don't think the current administration knows what they're doing. I can understand if it's because of hoarding, but the point is that the (price) jump is very sudden and extreme when the people's salaries have not changed and the public transport (system) has not improved.

"This has put the burden of world market prices on the common people while they are pretending that there is no benefit to the nation. I simply cannot understand this (new subsidy) mechanism. It's completely ridiculous," said Khalid, who was inundated with phone calls from his anxious constituents the whole afternoon. 

"(Abdullah) has done it again. Last time, it was a 30 per cent increase overnight. Now, it's a 78-sen increase. It's as though there is no benefit to them or to Petronas. As an oil-exporting nation, I don't understand why (the government is taking such measures) when we are selling to ourselves," he said.

Khalid observed that in other oil-producing countries such as Bahrain, the government not only kept petrol prices low, at 80 sen a litre, but also allocated each family RM4,000 a year to cope with the rising costs of other items such as food. 

He said the Opposition coalition had raised the issue in Parliament at its just-concluded first sitting this year.

The Pakatan Rakyat had suggested that fuel prices be floated at market prices but that the government give the money that would have been saved on subsidies back to the people to cope with the rising living costs, similar to what was being practised by the Bahrain government. 

Khalid predicted that the fuel price hike would cause havoc among the various businesses in the country, a view that was shared by his Opposition ally from the DAP, Liew Chin Tong, the Bukit Bendera MP.

"The hike is going to cause hardship," Liew warned.

 He said the massive savings from the subsidies ─ which Second Finance Minister Tan Sri Nor Mohamed Yakcop reckoned would total RM5 billion a year ─ could be better served by "immediately go(ing) into improving public transport". – The Malaysian Insider
Comments (35)Add Comment
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written by dzcorleone, June 05, 2008 10:11:17
He said the massive savings from the subsidies ─ which Second Finance Minister Tan Sri Nor Mohamed Yakcop reckoned would total RM5 billion a year ─ could be better served by "immediately go(ing) into improving public transport".

This means that the RM5B is going to RapidKL, Rapid Penang etc,,,, SCOMI Group.. Kamaluddin Abdullah..
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written by hemlock, June 05, 2008 10:13:16
The billions 'saved' will be lining the dirty pockets of dirty UMNOputras. Don't expect any 'improvement' in anything, unless it comes with grossly inflated contract prices. They're squeezing every last drop from the country and the people before they're ousted from power. I vote to stop paying for free jet fuel and free overseas holidays for those no-account ministers and their spouses! smilies/angry.gif
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written by Ravee, June 05, 2008 10:16:22
BN would naturally want to do this. By diverting the subsidy savings elsewhere, they create the opportunity to initiate new projects or maintain existing white elephant projects that will allow the elite UMNOputra class to continue to make money even if the economy takes a dive.

RM 5 billion saving a year for the whole nation as stated by KakaMama is no big deal if you compare it with gross wastages like the Port Klang 4.6 billion fiasco, the white elephant Customs facility at Johor Bahru.

So the RM 5 billion is going to improve some UMNOputra's public transport company.
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written by miracle, June 05, 2008 10:18:18
YES.. very much agree this goverment is a HOPELESS BUNCH .. take care of the security of the country first ... look into the public transport .. help on the salary increase move .. settle the food prices increase first before you hike the fuel ...to a "UNBELIEVEABLE" 0.78 cents??? our country net exporter fo oil what the hack that the rakyat have to suffer and carry this burden??? To subsidies the pockets of someone??

PR please do something .. we will face with more crimes from now on .. security of the country will be bad to worst ...

More people will "suicide" to overcome their expenses ...
ah longs will have a 100% increase of business .. more bankurpts will be added to % ..

Makkal Sakti .. HELP THE RAKYAT TAKE OVER THE GOVERMENT IMMEDIATELY...
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written by True Tales, June 05, 2008 10:21:52
Think nearer... improve the lifes of the rakyat first before thinking about improving public transport! Think how will a common low income person can survive!

Maybe we should have special bicycles lanes (such as in China) in the country so we can cycle (safely) to work - no need to build any more highways (less unexplained spending and contracts),no need to pay tolls, less pollution, less effect from fuel hike and rakyat is healthier! Hmm.. not a bad idea. smilies/cool.gif
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written by tino_chan1988, June 05, 2008 10:22:27
Money saved here is money earn for the cronies.

Save RM5 billion and spend RM18 billion on some unfeasible train project (and many more government-linked projects) seems to makes sense to them cause someone is making $$$.

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written by little dragon, June 05, 2008 10:24:28
d multiplier effect from these hikes r going to cost d RAKYAT n d country much much more than 5b.

so, where is d wisdom?

instead of asking d RAKYAT to "adjust" their lifestyles to cope, d government shud start by plugging all d "leaks" in our country's spending first!!!

v want to know where these "savings" r going to go? watever happened to d 4b d government saved d last round??? account for these first, then v will b happy to pay more.
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written by ghondoruwo, June 05, 2008 10:26:22
I do not really care how the government want to manage the subsidies (I never understand how they do it either). What I care is how the government plans to induce increases in the Rakyat's inflows - our incomes. It seemed in the past 18 months, our daily outflows on necessities had increased leap and bounce, but inflows had either remained stagnant or had a "ciput" increase. We pay taxes through our noses to finance the country's administration. So far, it seems like we have a bunch of monkeys running the government. After all these, they had a cheek of telling us that we had a growth of more than 7% in the first quarter. Yeah right!!! Maybe it was relevant to those UMNO goons & cronies who had been sucking our money day and night.
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written by HARIMAU BIN ABDULLAH, June 05, 2008 10:31:33
This could be the biggest mistake by AAB ... his stay as PM is getting shorter by the day ... 30 days? 3 months? 6 months? or TOMORROW?
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written by sickofitall, June 05, 2008 10:34:52
i HATE leader , and think they can get away with it!
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written by Aiseiman, June 05, 2008 10:35:11
The very sudden rise of 78 sen is really too much for the people to swallow en bloc. They should have put it in a staggered way even it means in high frequency citing the volatile world market as reasoning.

I am now convinced that the govt is stupid!
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written by sickofitall, June 05, 2008 10:36:15
i hate leaders who lie to us, and think they can get away with it!!
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written by Ann Meng Sim, June 05, 2008 10:43:23

Stupid is too mild a word for BN. No word can describe the PM and his bastards.

They can't even be compared to animals.

They are just scum.

Their desire is to destroy this nation. To rob the Rakyat. And then when there is nothing left, they will migrate somewhere.

They can run but they can never hide. One day, somehow, somewhere, all these bastards will pay dearly for what they have done.

smilies/angry.gif
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written by Zapper, June 05, 2008 10:55:46
Their coffers are empty and sponsors are running away. Therefore, the rakyat will be the first choice and the best options to fill their coffers. Do not trust their excuse that the savings in the subsidy will goes towards some food etc. In the first place, there is no disclosure on the way the savings are being utilized, no proper governance, and totally lack transparency. Also, do the government have the money??? If they have, why the steep increase in fuel price?? Something is definitely not right.
On another thought, can someone remind the PM what is status of all the development corridors with cost exceeding 1 trillion ringgit.
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written by grant, June 05, 2008 10:57:59
it just strikes me if the opposition sitting in parliament has no bearing on any decision made by the AAB administration? something like price increase will definitely have to be tabled or discussed prior to implementation, right? furthermore, it is not a 7% or 8% increase but a 41% increase.. shudnt this have at least been heard of from the opposition's bench?
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written by grant, June 05, 2008 10:58:55
whoai wahai orang bodoh kat BN... when the fook are u guys going to give us a raise in pay by 41%??? mangkuk!
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written by Jan, June 05, 2008 11:01:38
Raising fuel prices by this much is a COLOSSAL mistake by any measure.
They should have done something to improve public transport first before raising prices. Last time they promised to do it they didn't. We wouldn't be optimistic they will ever do it with this useless PM up there.
This is definitely going to accelerate the implosion of BN and UMNO.
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written by Wisdom above, June 05, 2008 11:03:38
In Future, will Cars be running on water-extracted hydrogen ?

Which workshops in Malaysia can install the above gadgets to reduce petrol bill ?

Syabas.
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written by sampalee, June 05, 2008 11:07:52
PR should be proactive and NOT be reactive.What are the measure PR have for uncaring acts of federal government.Talk it away or walk with the rakyat to bring down the federal government.Do we want to see death from starvation before we act.PR must protect the people,not merely symphatise.Return to the Trusted Makkal Shakti.
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written by howiseveryone, June 05, 2008 11:14:37
another classic case of AAB/BN thinking that we stupid rakyat who dono how to think. any reporter/jornalist that are not pro-BN reading this PLEASE ask AAB this question:
"We should be comparing apple to apple - Malaysia, being the net oil exporter, has the highest petrol price compared to other net oil exporter countries. What do you say to that?"
we have, yet again, topped the "Laughing Stock of the World" chart.
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written by collegian, June 05, 2008 11:38:56
Reality is many will suffer.Imagine where i work,one of the largest industrial areas in Johor with at least 60,000 workers for the past 16yrs does not have a single public transport services,therefore its cars,motorbikes for all non operative staff.Government pls allocate land for more space to put 'TARIK KERETA' areas as there will be a sharp increase again.Once again,government implement something without a proper study.Johoreans pls vote out BN immediately and we will have better public transport.
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written by AngelC, June 05, 2008 11:51:43
To all Bangsa Malaysia,

Q1. The new petrol price will be determined by market price less 30sen discount. Just curious, from where is the RM3 "market price" is plucked from? Based on the current market price in US, i.e. around USD4.05 per US gallon, works out to around RM4.15 per liter. And BTW, every month when the price is reviewed, who are the "jokers" who say or confirm the new "market prices"?????

Q2. Are we barking up the wrong tree here? Yes. The fuel hike is definitely out of propotion. True. No Doubt. But what is the core question that we should ask ourselves? Why are we, the Rakyat, cannot cope with this new increase, which within the next month or so will cause ALL other prices from roti canai to bus fares to everything else will go up. Simple. We MALAYSIANS DO NOT have the PURCHASING POWER that Economics 101 will tell u. Our salaries remained stagnant as compared to 10 years ago. The entry salary for fresh graduates to the workforce is still below RM2k, one would be lucky if he or she can have his/her first job at RM1.5k. A "manager" earns about RM4k a month, where even an odd job labourer in S'pore will earn as much. WE MUST FIND WAYS TO INCREASE OUR SALARIES TO INCREASE THE NATION'S PURCHASING POWER. Without this, no matter who governs the country (BN or PR), WE WILL STILL BE IN DEEP SH*T!!!

Frankly, I can't think of any solution to this salary issue. First, the public sector, if the govt (be it BN or PR is not a matter) increases the public servants salaries, the increase in spending will be much higher for any govt. Can they cope? I don't think so. Second, the private sector. Most businesses will be at ends meet now. How to increase the staff salaries? For those companies who can, why should they? These companies will always tell their employees that the economy is very bad and the company is "scraping by" thus no salary increase but inactual fact, their profit margin is higher now that the sales revenue is up with the salaries stagnant.

Q3. What can any govt do to improve the public transportation at all major cities? The answer is NONE! There is nothing they can do (BN nor PR) to improve the public transportation WITHOUT THE SHUTTING DOWN OF PROTON!!!! Why? Simple, if our public tranportation system is half as good as S'pore or Hong Kong, most of the people will use public transport rather than having cars. So, Proton sales will drop, and when proton sales drop...... u fill in the blanks.....

Q4. is MALAYSIA GOING UNDER???? YES, I think it will within the next 18 to 24 months if nothing is done on the above... GOD BLESS MALAYSIA!!!
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written by alan cheong, June 05, 2008 11:56:42
to the GUILLOTINE ! smilies/cool.gif
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written by rayfire, June 05, 2008 12:16:24
The SAVED amount from reduced subsidy MUST be used for enhancement of Public Transportation, more savings MUST be achieved by scrapping ALL White Elephant projects! Selling off worthless defence products and scrapping off all unecessary spending on worthless promotions, kenduri, majlis bersama pemimpin (aka morons) and such.
Vehicle tax on purchase and road tax should be reduced or abolished!
All toll agreement with concessionaires should be renegotiated for reduction!
CAN THEY DO THIS!!!!!!!
If they can't , you will see more people taking to the streets!
smilies/angry.gif
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written by rayfire, June 05, 2008 12:31:27
Being stunned is of no help, it is time for the BN goons to be stung as well.
Was this matter EVER brought up in Parliament for a proper debate and resolution?
If NOT, this is the time for PR to defend the rakyat by giving them a mindful in the Parliament session.
Grill them to kingdom come.
At the same time also, please live up to your promises, we are still waiting for the crossovers and eventual TAKE OVER!
Please proceed, take over and show em how it is done!
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written by DatoSeri, June 05, 2008 12:33:54

written by AngelC, June 05, 2008 | 11:51:43

Q1. The new petrol price will be determined by market price less 30sen discount. Just curious, from where is the RM3 "market price" is plucked from? Based on the current market price in US, i.e. around USD4.05 per US gallon, works out to around RM4.15 per liter. And BTW, every month when the price is reviewed, who are the "jokers" who say or confirm the new "market prices"?????


Hi AngelIC,

You cannot convert the USD to RM. People in the US is earning in USD and pay in USD. We should with conversion.

So, they are paying around US$1.30 per lit, which is CHEAPER than in Malaysia.
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written by wood, June 05, 2008 12:38:44
WHO ARE THE PERSONS WHO APPROVED THE PRICE INCREASES ?????

RAKYAT BOLEH GILA !
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written by DatoSeri, June 05, 2008 12:43:12
written by rayfire, June 05, 2008 | 12:16:24

The SAVED amount from reduced subsidy MUST be used for


Hi rayfire,

There is NO money being "saved" in this exercise, instead it is that the government is forcing the oil profit margin up by 78cents every liter instantly.

Remember, Malaysia is oil producing country and an exporter. It is entirely up to us to dictate the prices in the country.

Also take note that the accounting of Petronas is only known by the PM, and Petronas is making an astronomical figures in profit/revenue.

Needless to say, chances is that the additional 78cents/lit will be pocketed by corrupt BN/UMNO ass holes and their cronies.

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written by Edward C, June 05, 2008 13:17:44
I agree that world oil prices has gone above USD100.00 per barrel. In fact, the last figure I believe is USD135.00 per barrel. This means Petronas will also have gained from this increase. We are a NETT exporter of oil. So where has the additional revenue from this increase in sales value gone to?

The present government only harped on on going increase in world prices, but what about the "supposed to be" increase in oil revenue of Petronas from the sale of oil through a higher price?

This is something I cannot understand. What the rakyat hears is only about government having to subsidize more for fuel due to increase in world prices, but would Petronas not have gotten more revenue from the same rise in world oil prices.

Perhaps some one can enlighten me on this issue. There must still a few clever people left in the Barisan Government.

thank you.
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written by MasterBlaster, June 05, 2008 14:27:46
Second Finance Minister Tan Sri Nor Mohamed Yakcop reckoned would total RM5 billion a year ─ could be better served by "immediately go(ing) into improving public transport". – The Malaysian Insider


Ini cakap basi la!!! What you think you can provide a bus service at my Taman main road all the way to my office aaa?

Bloody idiot talking!
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written by krepot, June 05, 2008 14:32:27

(numbers are fictional, but look at the logic)

Rubber - we all know, Malaysia is full of it, one of the biggest in the world.

We grow rubber, we tap rubber and we sell rubber/latex etc.


Lets say:

In year 2000, rubber was traded for RM30 per kg.
Cost of production (planting/harvesting/labour/factory/etc. was RM20 per kg.
So, we made RM10 per kg on profits.

In year 2008, rubber was traded for RM132 per kg.
The cost of production only went up by about 20% over the last 8 years
Therefore, cost of production ((planting/harvesting/labour/factory/etc. was RM20 plus 20% (RM$) ~ RM24 per kg.
Therefore we now make a whopping RM108 per kg on profits




Apply this logic to Crude Oil, the stuff Petronas extracts and sells daily:

Year 2000: Price per barrel: USD30
Year 2008: Price per barrel: USD132

Oil Price Source:



Now, could someone in the industry, please give us, the real numbers to crunch so that we can educate fellow Malaysians and the kampung folks who voted for Barisan Nasional, how our government has been hoodwinking us all these years!

Two night ago, on RTM, I asked the current Finance Minister 2 about the higher revenues the country earns from higher world oil prices. Malaysia earns US$250 million more each time oil price increases by US$1 per barrel.


source: http://rockybru2.********.com/...s-and.html

WHERE HAS ALL THIS MONEY GONE TO?
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written by wargasetia, June 05, 2008 14:53:24
use this url to buy cheaper fuel. dont believe? try it.

http://excelgas.water4gas.hop.*****bank.net

http://excelgas.water4gas.hop.*****bank.net

so, who cares with the price?
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written by wargasetia, June 05, 2008 14:54:01
y we sell fuel to japan at usd30.. huh.... japanese are laughing now... malaysian are crying yooo....
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written by vistar, June 05, 2008 15:13:41
DEATH PENALTY SHOULD IMPOSED TO CORRRUPTED ENFORCER, POLITICIAN AND GOVERNMENT SERVANT.
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written by sarawakian, June 05, 2008 21:26:38
while the RAKYAT in general pays so much for fuel, fisherman still get the subsidised diesel. they no longer need to fish. all they have to do is sell the diesel to someone else and pocket the profits.

i'm quitting my job and going to buy a fishing boat. no need to be sea-worthy or have fishing skills. fill up 1000 litres of diesel and sell it for at least 60sen profit per litre. i don't think i can make that much if i really fish!

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