I think it’s about time we slashed the petrol price, don’t you think?
When the price of petrol was increased from RM1.92 to RM2.70 – a hike of 41 per cent – on 5 June, the price of Nymex Light Sweet Crude was around US$125 per barrel (on 4-5 June).
The current oil price is around US$56/barrel, which is less than half of what it was at the time.
And yet, after three four reductions, our petrol price is still RM2.30 2.15 – nowhere near the RM1.92/litre of 5 June, when the price was US$125.
Even if we take the price of RM2.70 at 5 June, a 50 per cent reduction in line with global prices would be RM1.35/litre – certainly not more than RM1.90. It’s time for a sharp drop in pump prices.
But the most we can expect from this government is a 15-sen reduction to RM2.15 2.00/litre, which will not have much impact on overall domestic demand/consumer spending unlike the sharp rise earlier. Neither will it be able to reverse the rise in food prices as a result of the sharp hike earlier.
A sharper drop in petrol prices, on the other hand, would stimulate domestic demand and local economic activity. It will also give traders and transport operators no excuse for maintaining high prices and thus lead to lower food prices.
Of course, such a sharp reduction in oil prices would have implications for our worsening budget deficit. So the question that arises is what happened to the extra revenue the government earned when fuel prices were soaring?
That said, the danger of slashing oil prices is that we might lose sight of the need to improve our public transport, to encourage fuel conservation and to explore alternative energy sources such as solar. Despite any price reductions, we must maintain our resolve to improve in these areas.
In the long run, we still have to move towards a more sustainable domestic-driven economy.
There should be a chart Crude Oil Vs Pump Price for people to see where the price should be, base on world crude oil price.
I don’t think it’s that dificult.
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dun ever believe that … sharrir says …. should not be a minister at all. resign … dun make a big fool yourself, … hear this, RESIGN…
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I wonder how many people are aware that we already pay taxes on our petrol?
Apparently, the government has forgone that tax revenue and added a subsidy in the past (first time I have been able to write that) which brought down the price of petrol to “reasonable” levels (although, to my mind the price levels are unreasonable for Malaysians who earn less and pay higher prices in general).
Now that the government has admitted that it has not been paying subsidy, the questions are mounting.
1) Why didnt they tell us?
2) Why didnt they tell us?
3) Why didnt they tell us?
4) Now that we can actually see the tax…where will it go?
The members of TRANSIT believe that the tax collected on petrol should be returned to the people in various forms including:
1) better and more efficient public transportation (no surprise here)
2) cleaner and more efficient petrol and diesel
3) tax/fuel rebates for lower-income drivers and public transport users and for those who purchase monthly public transport passes
4) incentives and action to reduce air pollution
5) better and more efficient public transportation (I did mention are users and supporters of public transport)
6) reduced tolls or the closure of some toll plazas
In is a sad thing when a government lies by omission but that is the way things are. We can only hope that the people will push the government into being more open, transparent, and responsible and stop dictating policies from the top down without consulting or involving the people.
No taxation (on petrol) without real representation (from our wakil rakyat).
Sincerely
Moaz Yusuf Ahmad
on behalf of TRANSIT, Klang Valley
klangvalley.transit@gmail.com
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