Consider lowering petrol price further
DAP National Deputy Chairman and MP for Kepong Dr Tan Seng Giaw calls on the Domestic Trade and Consumer Affair Minister to consider the need to reduce the price of petrol for the sixth time in three months, because the price of crude oil has gone down below US$50 per barrel.
On 21.11.2008, Dr Tan remarks on the lowest crude oil price of US$50 per barrel in New York for three and a half years, the 12 month crude future being RM49.62 per barrel. The London North Sea crude future is US$48.08 per barrel.
Yesterday, the minister Datuk Shahrir wound up the debate in Parliament on the budget allocation for his ministry. He mentioned the reduction of the petrol price for the fifth time since 28.8.2008. Petrol is RM 2 per litre and diesel RM1.90.
I asked him three questions: when will he lower the petrol price again? After the fifth adjustment, how much will the Government make from petrol? Will petrol stations be short of petrol?
Shahrir said that there should not be shortage of petrol. Owners of some stations complained that they buy petrol at the old price. With the new price they sell at a disadvantage.
Although the minister has not replied on the possibility of reducing petrol price for the sixth time in three months, he must consider the matter seriously as the price of crude is below US$ 50 per barrel. Lowering petrol price further will lighten the burden on the people.
We hope that the current financial measures including the RM 7 billion stimulation package will be effective against the global financial tsunami. Besides promoting credit flow and tackling unemployment, reducing the price of goods especially petrol and diesel is essential.
Dr Tan Seng Giaw