[ Index ]
 

Recently, the international petroleum price has gone up from US$12 to US$38 a barrel. Then, the Malaysian Cabinet approves the petrol price increase, keeping silence on the amount. Petrol is RM1.10 a litre -- that is up by 10 sen.

We hear that Government subsidizes petrol up to RM7 billion this year.
Meanwhile, our neighbours such as Thailand sell petrol at RM1.75 per litre. The difference in price encourages smuggling, costing the country millions of dollars.

In Europe, increase in petrol price causes big protests. People suffer.
Malaysia must learn from these.

We produce oil of better quality. We export our oil and import oil of lower quality for our need. Currently, the country earns billions. Although this may not last, we must make use of this money to lighten the burden of the people who are still suffering from the economic crisis.

We admit that subsidy is complicated. Once the public receive subsidy, we have difficulty to get rid of it. However, in the present circumstance, the Government must make sure that the petrol price would not add to the burden of the people. Whether it is 10 or 20 sen increase, the Government must ensure adequate supply and curb smuggling.

We know that increase in fuel price stimulates price increases in other
goods. Can the Government cope with this inflationary pressure? The
Government may try to stop unfair price hike. But, are the efforts good enough?

We fear inflation and smuggling. In Europe, public protests affect supply of petrol. In Malaysia, smuggling and hoarding affect supply.

We remember the good price of palm oil and the subsidy of cooking oil. Our cooking oil is cheaper than that of the neighbours. Although there was enough cooking oil, hoarding and smuggling caused the shortage. Can the same thing happen to petrol?

We call on the Government to improve its surveillance of the supply,
hoarding and smuggling of petrol and diesel. We must prevent the unfair
increase in the price of goods and the shortage of petrol.

 Dr Tan Seng Giaw