Fuel price hike due to Putrajaya’s poor management, says Sarawak DAP

The national coffes must be empty for the government to reduce fuel subsidies for RON95 petrol and diesel by 20 sen per litre, more so at a time when the world oil price has dropped, Sarawak DAP chief Chong Chieng Jen (pic) said today.

He said the government was out of funds due to its own mismanagement of the country's finances.

“In the past, the government had always justified its increase in fuel prices to the increase in the international crude oil price," he said.

But the price of crude oil in the past one year had dropped by 10%, Chong noted. He said the price of crude had dropped from US$91.42 on September 1 to US$90 per barrel on October 1.

"The coffers must be empty, otherwise, there is no valid justification for the government to want to cut the fuel subsidy,” the Bandar Kuching MP said.

Chong also said that national oil company, Petronas, recorded a solid performance this year.

He said Petronas' Q2 and half-year reports showed it still made good profits despite the drop in crude oil price.

“Malaysia is a nett oil exporter. So long as the international oil price is above US$50 per barrel, Petronas will make money.”

Chong said Petronas in its second quarter report for this year reported its nett profit to be RM21.1 billion.

“For the first half year, Petronas reported its nett profit as RM39.8 billion.”

Chong said it was evident that there was wastage in the handling of the country's finances, and he blamed "corruption and cronyism".

He also claimed that among oil exporting countries, Malaysia's fuel price was among the most expensive.

“For example, even after conversion of the exchange rate, petrol and diesel is still cheaper in Brunei than in Malaysia.”

Chong said that although Malaysia was blessed with a lot of natural resources, people were not able to enjoy a low cost of living nor high incomes.

“Whatever excuses and window dressing Prime Minister Datuk Seri Najib Razak and his image consultants like to use to justify the price increase, those who have reasonable intelligence would know that the increase is due to wastage in the national coffers.

“There is insufficient funds in the coffer and the increase is the price the public has to pay.”