Posts Tagged ‘Petrol prices

12
Sep
13

Fuel price hike and BR1M

News Analysis: Prime Minister Najib Razak has claimed that the 20 sen hike on RON95 and diesel would help the country to reduce its fiscal deficit.

He further claimed that the move would save the government RM1.1 billion in the remainder of 2013 and RM3.3 billion annually on the subsequent years.

Ok. He may be right.

But wait a minute.

To cushion the impact due to fuel price hike, Najib also announced that the cash payout for 1Malaysia People’s Aid (BR1M) would be increased in the Budget 2014.

However, he did not state how much it would be.

According to the figure provided by deputy Finance minister Ahmad Maslan last July in parliament, the government had spent a whopping RM2.9 billion for BR1M 2.0.

A total of 6.8 million recipients had received the cash aid, with 4.8 million receiving RM500 were those with household income of less than RM3,000 and another 2 million receiving

RM250 were from the bachelors group earning less than RM2,000.

As the finance minister, does Najib realise that giving BR1M actually cost more than what it can save from hiking the fuel prices?

At the old rate, BR1M would cost RM1.8 billion more than what it could save this year at RM1.1 billion.

Najib had promised to increase the cash payout.

Let’s assume the government would pay RM600 for household earning less than RM3,000 and RM300 for bachelors; BR1M 3.0 would cost the government a whopping RM3.48 billion, slightly more than the RM3.3 billion saved from fuel subsidies.

Mathematically, this has expunged Najib’s claim that the fuel price hike would help to reduce country’s fiscal deficit.

Now, how will the government recover the deep financial hole impact from their BR1M exercise?

Goods and services tax, electricity tariffs or new taxes? You name it. It seems like a people-unfriendly Budget 2014 is coming our way.

– harakahdaily.net

…more
The numbers don’t tally, Mr Prime Minister
04 September 2013 – Malaysian Chronicle

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11
Sep
13

UNLIKE BN, PR would have cut fuel prices

KUALA LUMPUR – PKR leaders slammed Prime Minister Najib Razak for burdening the ordinary folk with the latest hike in petrol and diesel prices, urging him to instead look at reducing the subsidies granted to the corporate sector, especially the string of elite ‘fat cat’ independent power producers.

At a press conference held on Tuesday, MP for Pandan Rafizi Ramli warned of a fast down-spiraling economy, pointing to the recent downgrade by Fitch.

According to Rafizi, this was the first time that an international ratings agency had reduced Malaysia to a “negative” outlook due to the government’s lack of a comprehensive plan to correct the country’s economic imbalances wrought by decades of excessive spending and pump-priming.

Pakatan would have rolled out plan to cut fuel prices

When asked if the Opposition had won the May 5 general election, would it still have been able to reduce fuel prices as promised in its manifesto, Rafizi was confident that the Pakatan Rakyat led by Opposition Leader Anwar Ibrahim would have been able to do so.

“What Najib has done is just cut the subsidy for the poor, he doesn’t touch the IPPs or the corporates whereas we proposed a real allocation from the corporate – I mentioned RM13 bil just now – so if you take RM3.3 or 4 billion, that will have the immediate impact of increasing the disposal income of the public and this actually goes back into the economy because our economy these days is becoming more dependent on domestic demand,” said Rafizi.

“If you look at the total fuel subsidy per year, it is about RM24.8 bil. It has 2 components, one which is about 60% of the total comprising of petrol and diesel subsidies going back to the public which is about RM14bil. The other RM10bil goes to the corporate, which is in the form of cheap gas, cheap LPG, electricity and so many other things. On top of that, there is another RM8bil of opportunity lost because gas is sold cheaply to IPPs so there is an opportunity to restructure approximately about RM13bil worth of subsidies going to corporate sector every year. What we would have done is restructure the RM13bil and re-channel this to the public and while we have breathing space to lower the fuel price, we would simultaneously roll out other reforms.”

…more
UNLIKE BN, PR would have cut fuel prices – Rafizi slams Najib for putting CRONIES FIRST
3 September 2013 – Malaysia Chronicle

11
Sep
13

Up goes petrol, prices of everything else will rise

Petrol, Prime Minister Najib Razak announced, will go up by 20 cents. In a clear sign of the vast gap that separates him from the everyday life of Malaysians, he added that it was not much. That, of course, is not at all true.

Raising the price of petrol raises the price of everything else, from milk to curry powder to pampers to tenggiri. The ordinary Malaysian, stuck with a stagnant paycheck thanks to BN’s incompetence in running Malaysia, will suffer. He will need to borrow ever more to get through the month. Some will resort to loan sharks, who proliferate unpoliced.

This then is life under the Barisan Nasional. They are bereft of ideas. Their projects are all failures, resulting only in large sums of money going into the pockets of expatriates who whoop it up in Bangsar, while Malaysians have to hang their head as they make their way to fly-ridden restaurants.

Wastage and mismanagement

What happened to Najib’s ETPs and whatever else? They were a bunch of meaningless acronyms given false life by Idris Jala’s numbers massaging. Now all Najib can do is raise our taxes.

There is no question that the external environment is a difficult one. China’s growth is slowing thus reducing commodities prices and we are sorely affected. So that’s what we are, a nation dependent on commodities! We have only stuff we dig out of the ground to sell! How we have progressed!

…more
Up goes petrol: From milk to curry powder to pampers to tenggiri, PRICES WILL RISE
Written by V Vijay
4 September 2013 – Malaysia Chronicle




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to do nothing.

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