Fuel hike; Higher TNB tariffs; Expect more price hikes

Beh Lih Yi & Chan Kok Leong | Jun 4, 08 4:55pm
The government has announced that petrol price will go up by 78 sen at midnight – a 40.6 percent jump from RM1.92 per litre to RM2.70.abdullah ahmad badawi govt announce new petrol price increase 040608 07“Effective from tomorrow, June 5, 2008, the price of petrol will be raised by 78 sen and the price of diesel will be raised by RM1,” Prime Minister Abdullah Ahmad Badawi told a 50-minute press conference at his office in Putrajaya.The price of diesel will increase by a whopping 63.3 percent – from RM1.58 per litre to RM2.58.The price hikes are among government measures to drastically cut the spiralling bill for oil subsidies, which is expected to amount to RM56 billion this year.With the new structure, Second Finance Minister Nor Mohamed Yakcop – who was also present at the press conference – said the government is expected to spend about RM18 billion a year on oil subsidiesAt a press conference held at 5.30pm, Abdullah also announced that the government plans to offer rebates to motorists to offset the fuel price increase.Under the scheme, vehicles below 2000cc will receive an annual rebate of RM625 to compensate for 800 litres of fuel used under the new price.”Owners of private motorcycles of engine capacity of up to 250cc will be paid a cash rebate of RM150 per year,” he said.petrol price hike before increase panic consumers 040608 03According to the prime minister, the money will be paid by money order. Rebate will be paid when motorists renew the road tax for their vehicles.The government is expected to save RM13.7 billion under this new subsidy restructure and other levies.The figures are derived from the savings made by state-owned oil company Petronas in gas and oil (RM8 billion), petrol (RM4 billion) and the independent power producer and palm oil (RM1.7 billion).

The surplus of RM13.7 billion will be used for food security policy (RM4 billion), subsidies in cooking oil (RM1.5 billion), rice import (RM400 million), flour and bread (RM300 million), petrol, diesel and gas (RM7.5 billion), Abdullah explained.

Since 2004, petrol has gone up by 97.1 percent, while diesel increased by a whopping 231 percent [see chart below].

Higher TNB tariffs

Abdullah also announced that the road tax for vehicles above 2,000cc will be reduced by RM200.

abdullah ahmad badawi govt announce new petrol price increase 040608 02For motorbikes above 250cc, their road tax will be slashed by RM50, but a minimum rate of RM2 road tax will be maintained.
The diesel subsidy for fishermen and vessel owners have been fixed at RM1.43 per litre. Previously fishermen bought diesel at RM1 per litre while vessel owners paid RM1.20 per litre.

The premier also announced a price hike in gas supply for electrical and industry sectors.

The premier added that the electricity tariffs too will be increased, effective July 1.

petrol price hike before increase panic consumers 040608 04He said the power tariff rate would remain the same for households which use below 200 kilowatt of electricity, which amount to RM43.60.

However, those using more than 200 kilowatt will have to pay around 20 percent more.

National power supplier Tenaga Nasional will announce its new price structure at 12 noon tomorrow.

The prime minister, in anticipating public anger from price hikes, has urged Malaysians not to organise street protests.

“The cost of petrol and commodities has risen drastically and so subsidies have to be restructured,” he lamented.

“God willing I hope Malaysians will not demonstrate over this,” he said, referring to fury over earlier hikes in a country where public transport is poor and most people are reliant on their cars.

Expect more price hikes

Abdullah said that under the new scheme, the government will maintain a 30-sen fuel subsidy, which is independent of the market rate of fuel prices.

petrol price hike before increase panic consumers 040608 01For example, if the market rate is RM3 per litre, the local pump price will be RM2.70 per litre with the 30-sen subsidy.

He said that the government would review the market price on monthly base and announce the subsidised price accordingly.

Abdullah also said that he was confident the economic growth could be maintained at five percent and inflation at four to five percent.

Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad, who was also at the press conference, conceded that the increase would impact on inflation, which came in at 3.0 percent in April.

“With this hike, the CPI (consumer price index) is expected to rise to 5.0 percent” this year, he said.

He also said that the new price of RM2.70 did not reflect the full market value, which could be as high as RM3-4 when the price controls are completely removed in August.

abdullah ahmad badawi govt announce new petrol price increase 040608 01Also at the press conference were Deputy Prime Minister Najib Abdul Razak, Minister in the Prime Minister’s Department Amirsham Abdul Aziz, Information Minister Ahmad Shabery Cheek and International Trade and Industry Minister Muhyiddin Yassin.

WAH!!! Matilah cmni!!! Semua naik tapi gaji x naik naik!!!!!!! Mana nak cekup duit!!! Boleh x kita tulis kepada kerajaan untuk kurang skit!! Ni naik smpi 78 sen wei!!! Nak naik pon…skit skit la!!!! Letrik pon naik…..beras pon naik…..AARRGGHHH!!!! Aku sarankan…bila nka naik harga barang…naik la gaji sekali!!!!!


10 responses to this post.

  1. Posted by fathi on June 5, 2008 at 11:17 am

    tak lama lagi…malaysia pasti akan jadi macam negara indonesia…
    yang kaya…kaya betul….
    yang miskin…hidup melarat…mereka tak pandang smua tu…..ni smua pemikiran org kaya la ni


  2. Posted by ChixCornish SecretRecipe on June 5, 2008 at 11:26 am

    ya betol stiap apa yang diluahkan oleh fathi itu…..dimana bijak dan logiknya kenaikan harga minyak ini??

    wuuu stesen minyak dah jadi cam concert plak..sme berebot2 nak p beli minyak bile sme dapat taw harga mao naek sungguh tinggi…adehs… mcm ape laa….oleh itu amalkan carpooling people!!!! =0 SAVE MINYAK SAVE NATURE KITA…


  3. Very informative, is there an alternative to gas car


  4. Posted by Brownies on June 5, 2008 at 2:32 pm

    Hye sean brown..yup it is..nyhow, whats alternative to gas car???


  5. Posted by nurulizzy on June 5, 2008 at 7:20 pm

    huhuhu..mcm nak luruh janutng masa dengar fuel price hike..gila skalie naik trus till 78 cents plus electric tariff pun 20% naik..inflasi pn bakal naik 5%..boleh bengkrap mcm nie..itulah govt..asik gaduh sana sini..politic here n there..nasib rakyat entah ke mana..why don’t tey all just unite..anyhow..malaysia petroleum is going to finish in few years time..tak lama sangat dah..I think that’s one of the reasons minyak naik..maybe lah kan..scary if u think bout the future..


  6. Posted by faizah binti sahidin on June 6, 2008 at 10:57 am

    korang semua tukar NGV la… NGV je tak naik harga….. jimat plak tuh? tapi mula2 nak pasang tong rm3000 lebih la plak. but only bape sen je seliter…. NGV tu yang teksi2 slalu gne tuh! skang byk dh org pakai NGV. tapi kete takde la pick up sgt… sebab gas je kan


  7. Very informative, is there an
    alternative to gas car
    can you really run your car on water


  8. Posted by nurulizzy on June 6, 2008 at 1:16 pm

    NGV tue apaekah faizah sahidin..nak cari rm3000 tue bengkrap ooo..


  9. Posted by CupCake on June 6, 2008 at 1:39 pm

    iyola..NGV itu apa?ngak paham gue..nyhow nanti p berator dgn teksi2 kat station minyak..ehehe waa queue nya panjang bangat..


  10. Posted by faizah binti sahidin on June 6, 2008 at 4:20 pm

    ala byk apa mercedes pakai, pakcik aku pakai. tapi terhad kat kl la.kat penang kalo tak silap ada satu je. station petronas je yg ada NGV station lain tak ada. mmg la susah tapi kalo dh byk yang pakai NGV mesti dia bukak byk pam.heh heh. mula2 je rm3000 pastu bape sen je seliter. i mean untung utk jangka masa panjang. Tapi kalo kancil pk 2-3 kali gak nak letak. dah la cc kecik.. kalo letak TONG NGV kompem takleh letak brg ape2


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