Protest Against the 4th June 2008 fuel price hike
Democratic Action Party Sarawak and the people of Sarawak strongly oppose to the fuel price hike announced by the Government on 4th June, 2008. By the announcement, the petrol price was increased by RM 0.78 to RM2.69 per litre (in Sarawak) while diesel price was increased by RM1.00 to RM2.58 per litre (in Sarawak).
The reasons for the objection to the domestic fuel prices hike are as follows:
1. This is by far the largest single fuel price increment in the history of Malaysia, 40% increase in petrol price and 63% increase in diesel price. The People find it extremely difficult to adjust to such a sudden and steep increase in fuel prices and the inflation spirals resulting from such hike.
2. Petrol and diesel are derived from crude oil, our country’s most valued natural resources. Oil belongs to the People the profit earned from the production and sale of crude oil ought to be utilized for the benefits of the People and , one of which is affordable petrol and diesel. But Petronas did not even made public its details account as if it was a “secret” enterprise.
3. The Government claims that the petrol and diesel sold in petrol stations are subsidized by the Government. This is the biggest FALLACY.
When a Malaysian purchases a car, he has to pay the Government heavy import tariffs. For example, a Toyota Vios in Thailand is only sold at approximately RM50, 000.00 but is sold at R80, 000.00 in Malaysia. Even with an average high petrol consumption of RM500.00 per month, this RM30, 000.00 tariff paid to the Government is equivalent to free petrol for 5 years (RM500 X 60 months)
4. We are a net oil exporting country. Our country actually benefits from the increase in international Crude Oil Prices (COP). Compared with other oil-exporting countries, our domestic petrol and diesel prices are by far the highest. The following are some of the petrol prices in these oil-exporting countries:Price of Petrol in Oil-exporting Countries (per litre)· UEA — RM1.19· Egypt — RM1.03· Bahrain — RM0.87· Qatar — RM0.68· Kuwait — RM0.67· Saudi Arabia — RM0.38· Iran — RM0.35· Nigeria — RM0.32· Turkmenistan — RM0.25· Venezuela — RM0.16· Brunei — RM1.26
The Government should compare our petrol and diesel prices with these oil-exporting countries and not pride itself for having cheaper petrol prices than the oil-importing countries. Further more, those oil importing nations have better social welfare blankets and cheaper cars in the first place as mentioned above (3).
5. Despite the so-called “subsidy”, the Government’s net income from production of oil after deducting the so-called “subsidy” on petrol and diesel is on the increase.
These figures were obtained by the Member of Parliament (DAP) for Bandar Kuching in Parliament.
This is further confirmed by the statement of the former Second Finance Minister Tan Sri Nor Muhamad Yacop on 2-11-2007 that:“ the country gained about RM250 million for every US$1 increase in the price of crude oil and that amount was after paying subsidies to maintain the price of energy in the country.”
6. Petronas profit has been increasing over the last few years and it is mainly attributable to the increase in the international COP.
7. The impact on the economy since the announcement of the fuel prices hike has been felt across all sectors of the local economy. Retailers and businesses have complaint that their businesses have been adversely reduced by some 30%. Imagine the long term developments as many will only feel the impact in 3-6 months time. Banks will see higher Non-Performing loans and thus will increase the lending rates which will put pressure on small and medium enterprises (SMEs) and then the ensuring layoffs will make many family bread earners losing their jobs.
8. The government continues to subsidies tens of billions to the Independent power Producers and yet it can’t afford to subsidies fuels to the poor Malaysian in general.
It should take war on corruption which Morgan Stanley Singapore estimated at RM 380 billions (up to 2004) under the privatization policies implemented. That should be the main concern for the government and yet we do not see any concrete action by the BN government to take corruption seriously.
Democratic Action Party Sarawak and the people of Sarawak strongly oppose to the fuel price hike announced by the Government on 4th June, 2008. By the announcement, the petrol price was increased by RM 0.78 to RM2.69 per litre (in Sarawak) while diesel price was increased by RM1.00 to RM2.58 per litre (in Sarawak).
The reasons for the objection to the domestic fuel prices hike are as follows:
1. This is by far the largest single fuel price increment in the history of Malaysia, 40% increase in petrol price and 63% increase in diesel price. The People find it extremely difficult to adjust to such a sudden and steep increase in fuel prices and the inflation spirals resulting from such hike.
2. Petrol and diesel are derived from crude oil, our country’s most valued natural resources. Oil belongs to the People the profit earned from the production and sale of crude oil ought to be utilized for the benefits of the People and , one of which is affordable petrol and diesel. But Petronas did not even made public its details account as if it was a “secret” enterprise.
3. The Government claims that the petrol and diesel sold in petrol stations are subsidized by the Government. This is the biggest FALLACY.
When a Malaysian purchases a car, he has to pay the Government heavy import tariffs. For example, a Toyota Vios in Thailand is only sold at approximately RM50, 000.00 but is sold at R80, 000.00 in Malaysia. Even with an average high petrol consumption of RM500.00 per month, this RM30, 000.00 tariff paid to the Government is equivalent to free petrol for 5 years (RM500 X 60 months)
4. We are a net oil exporting country. Our country actually benefits from the increase in international Crude Oil Prices (COP). Compared with other oil-exporting countries, our domestic petrol and diesel prices are by far the highest. The following are some of the petrol prices in these oil-exporting countries:Price of Petrol in Oil-exporting Countries (per litre)· UEA — RM1.19· Egypt — RM1.03· Bahrain — RM0.87· Qatar — RM0.68· Kuwait — RM0.67· Saudi Arabia — RM0.38· Iran — RM0.35· Nigeria — RM0.32· Turkmenistan — RM0.25· Venezuela — RM0.16· Brunei — RM1.26
The Government should compare our petrol and diesel prices with these oil-exporting countries and not pride itself for having cheaper petrol prices than the oil-importing countries. Further more, those oil importing nations have better social welfare blankets and cheaper cars in the first place as mentioned above (3).
5. Despite the so-called “subsidy”, the Government’s net income from production of oil after deducting the so-called “subsidy” on petrol and diesel is on the increase.
These figures were obtained by the Member of Parliament (DAP) for Bandar Kuching in Parliament.
This is further confirmed by the statement of the former Second Finance Minister Tan Sri Nor Muhamad Yacop on 2-11-2007 that:“ the country gained about RM250 million for every US$1 increase in the price of crude oil and that amount was after paying subsidies to maintain the price of energy in the country.”
6. Petronas profit has been increasing over the last few years and it is mainly attributable to the increase in the international COP.
7. The impact on the economy since the announcement of the fuel prices hike has been felt across all sectors of the local economy. Retailers and businesses have complaint that their businesses have been adversely reduced by some 30%. Imagine the long term developments as many will only feel the impact in 3-6 months time. Banks will see higher Non-Performing loans and thus will increase the lending rates which will put pressure on small and medium enterprises (SMEs) and then the ensuring layoffs will make many family bread earners losing their jobs.
8. The government continues to subsidies tens of billions to the Independent power Producers and yet it can’t afford to subsidies fuels to the poor Malaysian in general.
It should take war on corruption which Morgan Stanley Singapore estimated at RM 380 billions (up to 2004) under the privatization policies implemented. That should be the main concern for the government and yet we do not see any concrete action by the BN government to take corruption seriously.
We urge that the petrol and diesel prices be reduced to the pre-General Election level, i.e. Petrol at RM 1.92/Litre and Diesel at RM 1.578/Litre.
In the interest of the People, we hope the BN government will reverse its decision on the price hike immediately. The government must honor its proclamation of providing "security, peace and prosperity" as contained in its last election manifesto.
In the interest of the People, we hope the BN government will reverse its decision on the price hike immediately. The government must honor its proclamation of providing "security, peace and prosperity" as contained in its last election manifesto.
David Wong
DAP Sarawak publicity secretary
DAP Sarawak publicity secretary
27-06-20
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