No Petrol Price Hike This Year, Govt To Honour Promise - Najib

PUTRAJAYA, Sept 18 (Bernama) -- The Government will not increase petrol price this year despite global oil prices hitting US$80 (RM280) per barrel last week, Deputy Prime Minister Datuk Seri Najib Tun Razak assured today.
"Whatever we promised, we will honour our commitment for the price of petrol...gas is another issue,' he told reporters after chairing the 21st National Forestry Council meeting.
In February last year, the government raised the retail price of petrol and diesel by 30 sen a litre and liquefied petroleum gas by 30 sen a kilogramme, with a promise to the people that there would be no further raise in the retail price of petroleum products this year.
However, global oil price has been rising steadily, hitting US$80 per barrel last week, fuelling speculations oil prices would touch US$100 (RM350) by year-end.
Najib said the increase in prices of commodities and foodstuff was a global phenomenon and was not peculiar to Malaysia alone.
"It is a global concern owing to certain factors, so we need to take into account and make adjustments in this matter.
"The government is sensitive to this issue...that's why it has protected the consumers by providing RM14 billion in petrol subsidy a year.
"This is the subsidy and tax exemption that we give. This is government's surety...we subsidise people's money for the people," he said.
He said Petronas, the national oil corporation, had paid RM13 billion in oil subsidy.
"That's the responsibility borne by Petronas all this while. So, it's absurd to say the government is insensitive to the people's interests. Our subsidy burden is huge.
"If we add these two subsidies (the government and Petronas) for petrol alone, it amounts to RM27 billion," he said when responding to press reports today that Petronas was pushing for an upward revision in gas prices.
"I don't know, I don't want to pre-empt whatever decision the government will make (on this issue)."
Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik said yesterday a Cabinet Committee chaired by Prime Minister Datuk Seri Abdullah Ahmad Badawi would decide on Petronas' proposal on Monday.
Lim, however, assured the people that despite the heavy reliance by Tenaga Nasional Bhd and Independent Power Producers on gas, there would be no increase in electricity tariffs.
On spiralling prices of goods, Najib said it can only be reduced with higher subsidy and production of goods as the price hike was a global trend.
"There is not much we can do...the government is doing whatever it can, but world prices have moved so high, up to a point we have insulated consumers by fixing the prices of these commodities.
"But there comes a point when you fix a price but it is not realistic, then there would be a shortage of goods. So we have to manage the situation the best we can," he added.


tunku : we understand that the government is doing it best and hope that it will continue doing it best o control the oil price as if the price is up again, there would be millions who will suffer by the increase of petrol prices as everything single item price would increase again.the government should really think of how to overcome this matter urgently and one of the possible way is to strengthen our ringgit value more.