Petrol now going for RM 2.70 per litrePosted: June 5, 2008
KUALA LUMPUR: Prime Minister Datuk Seri Abdullah Ahmad Badawi on Wednesday announced price hikes for petrol, diesel and electricity.
He said the new price for petrol is RM2.70 a litre, effective midnight tonight. The price goes up by 78sen from the current RM1.92, a hike of 40%.
Abdullah also announced a RM625 annual cash rebate per vehicle, for owners of private vehicles with engine capacities of up to 2,000cc, as well as pickup trucks and jeeps with engine capacities of up to 2,500cc.
Owners of private motorcycles with engine capacities of up to 250cc will receive RM150.
Payment will be made via Money Order upon renewal of road tax, from July 1.
Full article here.
In fact, I don’t think this would even be of any “new” news to anyone. Everyone has had their eyes set on waiting for the statement from the PM’s Office.
I have to say that I was expecting that they would do away with the subsidy, but I guess they didn’t have to guts to go through that.
It has been widely speculated for the past few days that petrol prices could hit RM4 when the government decides that they are no longer going to provide subsidised fuel. Now that they are still susidising, although with a price increase of 78 cents, there would be sighs of relief that they still don’t have to pay the full retail price.
It could have been one of their tactics to control consumer anger on the price hike. It seems that it’s working out quite ok.
Perhaps they can set a timeframe to gauge the scenario, and see how the cash rebates work out. From there, or rather from here on, efforts must be made so that the people can pay full retail price for petrol consumption. Any form of subsidy or rebate should make its way to those who need it more, meaning the low-income group.
With higher fuel prices, perhaps society can start to look at ways to save on petrol consumption, and at alternative transport systems. And together with the hike in fuel prices, even electricity bills are going to be higher. So the people will have to find ways on how to be energy efficient.
The fact that they have decided to still maintain some of the subsidy, and have rebates for a certain threshold of vehicles is a good start. But they must not have any illusion that this spells the end of the fuel crisis.
This is far from over. Prices will continue to go up. It is up to what the govt decides to do next that determines whether this is at all going to succeed.