Tiered fuel plan scrapped vs Fuel prices set to rise
Posted By Saimatkong on Mar 7, 2010 | 0 comments
6,878 views
Okie… Confirmed tiered fuel plan scrapped but now what? “Fuel prices set to rise…” for all the CC no matter you driving 800cc Kancil or or aboce 2.0cc cars… It’s no different, this is because it’s set to rise 10 sen.
Will it affect our roti canai, teh tarik, mamak or kopitiam price again? Please do not do that… Petrol price increased, they increase the roti price but when petrol price reduce the increased price will not be decreased… It’s not fair right? =(
So you will see more cars queuing up at petrol station waiting for get their tank full on 30th April, before 1st of May and less car on the road the next day due to the fuel price increased. and there will not be any jam after the fuel price increase? It’s like previously, just less car for 1 week then the jam will be back!
We need the subsidy.
Tiered fuel plan scrapped; Govt will not increase price for now
By MAZWIN NIK ANIS
Tiered fuel plan officially scrapped
PUTRAJAYA: The Government has officially scrapped its plan to introduce the two-tiered restructuring of fuel subsidy following negative feedback from the public.
Domestic Trade, Co-operatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said the decision was taken because the Government did not want such an important policy devoid of public support or acceptance.
“Prime Minister Datuk Seri Najib Tun Razak has stated that this is the people’s Government and it is open to views. Today, the Government has proven that we are not rhetoric and we truly hold on to our words.
“We have heard the people’s voices and now we have proven that we are willing to scrap the plan because the rakyat do not want it,” he told reporters here yesterday.
Ismail Sabri said the price of fuel would remain the same for now as “there was no directive to announce any hike”.
“I don’t know when that will happen but the public must remember that fuel price fluctuates.
“Foreigners can still purchase fuel according to petrol pump price. But the policy governing the sale of petrol to foreign-registered vehicles at border areas remains,” he said, adding that the ministry would be proposing to the Cabinet another “policy for foreigners”.
Foreign-registered vehicles are only allowed to pump a maximum of 20 litres at petrol stations within 50km radius from the border.
Ismail Sabri said the Government was subsidising nine sen more now in addition to the 30 sen it was already forking out for every litre of RON95 due to the commodity price increase.
Last year, the Government forked out RM3.4bil to subsidise petrol and RM1.9bil for diesel.
The plan, originally set to be implemented on May 1, was to introduce a two-tiered pricing system for petrol based on engine capacity while foreigners would have to pay the market price.
It called for the mandatory use of MyKad to differentiate Malaysians from foreigners, requiring the need for MyKad readers at petrol stations.
Ismail Sabri also said that a subsidy rationalisation laboratory headed by Minister in the Prime Minister’s Department Datuk Seri Idris Jala was studying the implementation of government subsidies.
Source : TheStar
Fuel prices set to rise
By DANNY YAP
PETALING JAYA: The Government is likely to revert to slight increases in fuel prices over time now that it has been officially announced that the proposed two-tier fuel subsidy scheme based on vehicle engine capacity has been scrapped, analyst and economists say.
The proposed fuel subsidy scheme was originally set to be implemented on May 1.
Maybank Investment Bank analyst Mohd Khair Mirza said: “We may see an increase of about 10 sen in petrol prices post May 1.” He added that it was the only viable option for the moment unless the Government came out with a better fuel subsidy scheme.
Mohd Khair said the two-tier fuel subsidy scheme proposed in theory appeared good on paper but issues such as implementation and enforcement were questionable.
He said: “At least with the slight increase in fuel prices over time it is applied across the board and the Government is able to close the gap on the fuel subsidy which remains unsustainable.”
Mohd Khair said that based on US$80 per barrel of crude oil, the Government was currently subsidising fuel at the pump at around 40 sen per litre.
An economist from a rating agency said although the proposed two-tier fuel subsidy scheme has been scrapped, it should not deter the Government from continuing to look for other schemes that were more practical and viable.
He said a viable scheme should meet two objectives – ensure the hardcore poor are not badly affected and address the fuel subsidy.
A local economist from a broking house said the Government’s decision to scrap the proposed two-tier fuel subsidy scheme based on vehicle engine capacity came as no surprise.
“We figured it (scrapping of the scheme) would happen. There was a lot of talk that the subsidy scheme was not practical, despite a lot of effort by the Government to implement it,” he said.
The economist believed some individuals were waiting to exploit the scheme (if implemented) thinking they could benefit from the scheme.
“Thankfully the Government realised the proposed subsidy scheme was not foolproof and decided to scrap it,” he said.
Source : TheStar
