Rafizi explains why Anwar's 2008 pledge to lower petrol prices not feasible now

 

STATE POLLS | During the 2008 general election, Anwar Ibrahim made an infamous pledge that if he were to become prime minister, petrol prices would go down the very next day.

That pledge has been constant fodder for Anwar's critics ever since he became prime minister last November, as fuel prices remain relatively unchanged.

Economy Minister Rafizi Ramli, however, said there's a reason why the 2008 pledge is not feasible today.

Explaining the background behind the pledge on the campaign stage, Rafizi said at the time of the pledge fuel prices had shot up drastically, causing inflation and the price of goods to also shoot up.

However, the government at the time was also in a good fiscal position and would have been able to subsidise fuel.

"Debts were under control, government income could still handle subsidies.

"So that is why Anwar said, in order to alleviate the people's burdens immediately, if we won the 2008 general election, fuel prices would go down immediately," Rafizi said during a ceramah in Gombak on Sunday.

Now, however, he said the government's debts have tripled.

Prime Minister Anwar Ibrahim

Prices under control

Nonetheless, Rafizi claimed his formula has helped keep fuel prices under control, and has been in effect since the 2018 Pakatan Harapan government.

This is believed to be in reference to a ceiling price being imposed on RON95, while RON97 is sold at market prices.

Rafizi said to maintain the current price of RON95 of RM2.05 per litre, the government has to pay RM1 in subsidies per litre.

Meanwhile, he said increased debt, increased costs of running government, and increased cost of subsidies, make lowering fuel prices now unfeasible.

The government's current plan is to make subsidies more targeted to benefit only those in need.

It should be noted that Anwar had said in 2022 - prior to the 15th general election - that fuel prices could still be brought down.

"With fuel prices as it is now, there is no reason it can't go down," the PKR president had said in July last year.

Anwar also said the reason fuel prices did not go down when Harapan took power in 2018 was because he was not the prime minister then. - Mkini