Tun Dr Mahathir Mohamad said today that fuel subsidy cuts must be done in stages so that Malaysians could absorb the impact of paying a higher price for fuel. – The Malaysian Insider file pic, November 22, 2014.
The total removal of subsidies for RON95 petrol and diesel should be done in stages so that Malaysians would not be burdened by it, Tun Dr Mahathir Mohamad said today.
The former prime minister said that although he agreed that fuel subsidies should be removed, he felt it should have been conducted in stages over a period of time.
“I agree with the reducing of subsidies but this is only my opinion. The removal of subsidies take time, just like anything we do, it has to be step by step,” Dr Mahathir said at the Putrajaya International Convention Centre after receiving an honorary doctorate from MAHSA University.
Hasan said the retail price for these two fuels will be decided by a "managed float".
The fuel prices would be determined on a monthly average price, which will be announced at the end of each month for the following month.
World petroleum prices would be monitored daily to get the average.
The managed float system was already in use for RON97 petrol, and the move to use the same system for RON95 and diesel was made after it had proven successful for the higher-grade fuel.
Meanwhile, PKR today slammed Putrajaya for the move describing it as “irresponsible” in light of the financial burden it would create for the people.
PKR Youth chief Nik Nazmi Nik Ahmad said Putrajaya victimised the people with the move and failed to explain itself despite the many questions raised over government spending.
PKR secretary-general Rafizi Ramli yesterday said that the government was doing its best to embezzle Malaysia’s wealth by abolishing subsidies.
"The bigger issue at hand is whether the country's oil and gas wealth is shared with the public and not just squandered by Putrajaya," Rafizi said.
- TMI
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