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Statement by Dr Tan Seng Giaw, DAP National Vice-Chairman and MP for Kepong on the Malaysian Cabinet's approval of petrol price increase in yet unspecified amount. 20.9.2000

International petroleum price increases from US$12 to US$36 per barrel. Malaysia exports her petroleum and her pump price is RM1.10 per litre, for which the Government subsidizes 45.79 sen. Now, the Cabinet approves the price increase in yet an unspecified amount. Meanwhile, Europe sees serious protests against petrol prices and taxes, disrupting daily life.

Most Industries depend on oil. The current price raises the cost of production. This burden affects exports, the stock markets and the growth of world economy.

Some people guess that the Government fixes the increase in petrol price at 9%. Whether it is 6 or 9%, it will afect the consumers and cause widespread hike in the price of goods.

The Government assures the people that its oil subsidy will not be reduced much and that it would not burden the consumers. Hence, we hope that the Finance Ministry will study the effects of the price hike in all aspects.

The world may have one trillion barrels of oil reserve which will last for 40 years. But, if the pump price goes up, there will be inflationary pressure.

In the last few days, we have seen big protests in United Kingdom, France, Belgium, Geermany, Spain and Sweden because of petrol price and tax. These countries experience disruptions.

If oil price makes life diffiuclt for Malaysians, they will respond accordingly. The Government should take heed by making sure that the hike will not disturb Malaysian life. We should learn from the European experience.

Dr Tan Seng Giaw