Petrol prices should come down as Malaysians already financially burdened, says PKR

PKR says the price of RON95 petrol should decrease in accordance with world crude oil prices. – The Malaysian Insider file pic, July 1, 2015.

PKR today said that Putrajaya should bring back petrol subsidies as the latest petrol increase comes at a time when the people are burdened by the goods and services tax (GST) and devaluing ringgit.

Retail price of RON95 went up by 10 sen and RON97 by 20 sen today with diesel prices remaining unchanged.

The  new price for RON95 is now RM2.15 a litre, and RON97 at RM2.55 a litre after GST.

PKR secretary-general Rafizi Ramli (pic, right) said he would be filing a private member’s bill in the coming Dewan Rakyat sitting for the creation of an oil prices stabilisation fund, adding that this was necessary if Datuk Seri Najib Razak remained adamant about not bringing back petrol subsidies.

According to Rafizi, crude oil prices showed a reduction from US$66 per barrel in early June to around US$62 later the same month.

The price of RON95, which is pegged to world crude oil prices, was set at RM1.70 per litre in February when world oil prices were at US$60 per barrel.

"This means that when world prices dropped to US$60 as seen at the end of June, it should translate to RON95 prices coming down to RM1.70 per litre.

"But instead, the Najib administration increased the price of RON95 contrary to the movement of world crude prices," Rafizi said in a statement today.

He said as finance minister, Najib had also made certain taxation decisions that elevated the people's burden, adding that he had revealed earlier this year how Putrajaya had imposed hidden taxes in the prices of petrol and diesel and collected about RM2 billion within three months.

He said that since the implementation of the GST in April, the government had collected about RM6 billion within two months.

Rafizi urged the government to maintain petrol subsidies of at least 30 sen per litre in view of the devaluing ringgit and other factors.

With this, he said, the government would be spending around RM7 billion yearly in subsidies.

Rafizi said that if this was introduced in August, the government would only have to bear RM3 billion compared to the RM10 billion it collected in the form of taxes through petrol prices and GST in the first six months of the year.

"The federal government has the financial capacity to subsidise 30 sen per litre and the people deserve this given that they have been subject to additional taxes since early this year," he said.

The Pandan MP added that he was also working with NGOs for a campaign to champion the return of subsidies.

"I'm certain Datuk Seri Najib Razak is only afraid of the people's objections and if they are loud and clear, he will have to bring back subsidies to ease the burden of the people," he said.

He also urged Barisan Nasional MPs to support the private member’s bill for the benefit of the people.

- TMI