Should not be further increase in petrol price

There should not be further increase in petrol price in the country.

DAP National Deputy Chairman and MP for Kepong urges the Government against any intention to increase the price of petrol, especially in the present economic environment.

The Government should let us know what it intends to do with the savings from the reduction of the petrol subsidies. It has mentioned about using the money for welfare and other purposes to benefit the public.

Dr Tan refers to the statement yesterday by the Deputy Domestic Trade and Consumer Affairs Minister Datuk S. Veerasingam that the Government will not reduce the price of petrol despite the global price of crude oil dropping to US$57.24 (RM210) a barrel. 16.10. 2006.

The Government has promised that it will not raise petrol price until the end of 2006. In March this year, it increased petrol price by 30 sen when crude oil was US$62.91 a barrel. The retail price is RM1.92 a litre for petrol and RM1.59 for diesel. It still subsidizes petrol and diesel, accumulating more savings with the lower price.
For over two years, business atmosphere has not been good. People experience the effects of high crude price of over US$70 a barrel. Now, crude price is falling to below US$60 a barrel, Malaysians hope that the Government reduces petrol price.

What is important is that the Government keeps to its promise against increasing petrol price further. If petrol price does not go up further, the people especially businessmen will not have to bear more burden.

In March 2006, the Government announced its objective of approving petrol price hike as savings of about RM3 billion for public transport. Then, crude price went up to over US$70 a barrel, putting paid to the estimated savings.

Now, the crude price is below US$60, the savings from the reduction of petrol subsidies will be substantial. We hope that the Government will make public the amount of savings and the purpose for which these will be used.

Tan Seng Giaw