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Nov 27, 2008

MCA wants 30 sen fuel subsidy to return

malaysiainsider | MCA today urged the government to resume the 30 sen petrol subsidy as promised in June when the price for RON97 petrol shot up to RM2.70.

“The chain reaction from the previous petrol hike is still there and the inflation still stands high at 7 per cent when compared to 2 per cent in 2006,” information chief Lee Wei Kiat said.

In a statement released to the press, Lee said that the subsidy would lessen the burden of inflation on lower and medium income groups.

It was recently revealed that since the beginning of November, the drop in global crude oil prices has effectively allowed the government to collect a tax on the pump price of petrol instead of providing a subsidy.

The price of RON97 now stands at RM2 per litre.

MCA also objected to the proposal to fix a floor price for petrol.

According to Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad, the National Economic Action Council will meet next Monday to decide on whether to set a floor price following the gradual drop of the world crude oil price which has now fallen to US$50 per barrel (RM175) from US$120 in July.

“It does not promote transparency and consistency in government policies. The economic prosperity should be enjoyed by all citizens,” Lee said.

Lee said the MCA instead backed an auto floating mechanism as it would provide an optimum price for motorists based on current oil prices and at the same time allow the government to monitor the mechanism in an open and transparent manner.


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