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Jun 4, 2008

78 sen more for petrol at midnight

malaysiainsider - Fuel prices will rise by 40 per cent to reduce the government's massive subsidy bill, a move that is expected lift the inflation rate to 5 per cent.

The pump price of gasoline will rise from midnight to RM2.70 a litre from RM1.92 now, Prime Minister Datuk Seri Abdullah Ahmad Badawi told reporters today.

"We cannot naturally keep subsidising at the current rate," Abdullah said.

He said the government will also give a yearly cash rebate of RM625 per year to owners of cars with an engine capacity of 2,000cc or less to offset their burden from the massive hike. The money will be distributed to owners through post offices.

Subsidies have kept the price of fuel in Malaysia — a net exporter of oil — among the lowest in Southeast Asia. But the government says it can no longer afford to fund the subsidies, which are expected to cost the treasury more than RM45 billion

... selanjutnya.


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