Government Should Reduce Fuel Price Following the World Market


KUALA LUMPUR, 31 Oct: Pakatan Rakyat (PR) questions the government’s move to raise fuel subsidies to RM2.326 billion in the National Budget 2014 because the government targets savings of RM3.3 billion next year.

Member of Parliament for Tanjong, Ng Wei Aik said, the subsidy increase would increase the total expenses to RM22.341 billion, however, only RM20.015 was allocated in the National Budget 2013.

“Fuel subsidies for next year will increase by 11.62 percent, from RM20 billion to RM22 billion. Fuel subsidies should be increased, not reduced.

“So we have a big question, why does the subsidy need to be increased dramatically when the announcement by the Prime Minister explained in September that the increase of 20 cents for RON95 and Diesel would result in savings of RM3.3 billion to be recorded in 2014,” he said in a press conference here in Parliament today.

Wei Aik said, the oil price has fallen as diplomacy aimed at Syria and Iran eased concerns about Middle East supplies after climbing to over USD110 in the late August, and the oil price even dipped below USD102 per barrel after parts of the US Government were ordered to shut down because of a budget impasse in Washington.

“The price of fuel is a major problem that burdens the people because they want the price to be lowered, not increased,” he said.

Among the countries that have reduced the price of oil are India, Taiwan, Ghana, Vietnam, Bermuda, South Africa, Georgia and China, in the last three months.

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