KUALA LUMPUR, May 27 — The government could hike petrol prices by an initial 15 sen per litre from their current price at some stage this year under plans presented by a body advising the government on how to cut subsidies.
The benchmark RON 95 grade currently costs RM1.80 per litre.
The proposals were made in a public presentation today to win over voters to accepting higher prices as the government seeks to reduce the country’s budget deficit which stood at a 20-year high of 7 per cent of gross domestic product in 2009.
Under the proposals presented by the advisory body, the price of petrol would be hiked some time this year followed by two price hikes totalling 20 sen per litre in 2011 and two more of 20 sen per litre in 2012.
In 2013-2015, the price hikes would slow and by the end of 2015, the price of RON95 would stand at RM2.60 per litre, according to the plans that have yet to be approved by the government.
The forecasts were based on a crude oil price forecast of US$73.06 (RM233.80) per barrel for 2011 and $79.41(RM254.11) -$94.52 (RM302.50) for 2013-2015. — Reuters
Source: The Malaysian Insider
Guess what? BN never hold their promise. What deficit? Similar tone with the past price hikes. To reduce budget deficit, cater inflation problem and so on. Now, after 2 years, the minister in charge of the government transformation programme (GTP) said that Malaysia had a whopping RM362 billion debt. No improvement as promised isn’t it. The condition is worsening.
And yes, it will have an impact on prices of food, services and essential items across the board with individuals and groups attempting at profiteering. Minister in the Prime Minister’s Department Datuk Seri Idris Jala claim that the subsidies now make up about 15.3 per cent of the federal government spending. He also said Malaysia may end up as a bankrupt nation by 2019, if the current costly subsidy is maintained. While Auditor-General claim that there’s a quite huge ‘leakage’ amounted up to at least RM 28 Billion. See, how ‘accountable’ our government is.
Now, they want to implement GST, approve football betting licence and so on. All of them at the expense of Rakyat. It’s unfair. First thing that should be looked into is their expenditure. Where they spend the money? Elections? Bribery? low interest loans to giant companies? Administration blunders? People know what happen to Sime Darby. Rakyat is never at fault for all these.
I wonder if they can really decrease the deficit, inflation or whatever reasons they claim. Same thing has been said in the past. Nothing happened. Just see in the next five years if the GDP increase progressively that Rakyat can enjoy a better life. Or maybe the throne will fall to other hands.