KUALA LUMPUR, Nov 30 — A DAP MP has demanded today that Putrajaya explain a hike in pump prices for diesel at a time when petrol prices are down, citing a report by a Chinese-language daily which detailed new prices effective tomorrow.
Seputeh MP Teresa Kok also urged Putrajaya to explain the managed float system, claiming that there is no reason to justify the complete removal of fuel subsidy as announced by the Finance Ministry.
“Why is it that with such a big drop in crude oil price, Malaysians will still have to pay higher price for diesel?” asked Kok in a statement.
Kok cited a report saying that the benchmark Brent oil price has fallen to US$70 per barrel, a drop of around 40 per cent from June when it was around US$115.
“The government must therefore explain how the managed float system works and also show how the new fuel prices have been calculated,” she added.
According to Kok, Chinese-language daily China Press headlined a news story today claiming that the new pump price for RON95 petrol would be RM2.26 per litre with a reduction of 4 sen per litre and RON97 RM2.46 per litre with a reduction of 9 sen per litre. However, the price of diesel will go up by 3 sen per litre to RM2.23 per litre.
Kok said the drop in the prices of RON95 and RON97 would be too miniscule to justify a subsidy removal, and questioned Putrajaya’s haste in taking that action.
The DAP National Vice-Chairman suggested instead that any subsidy removal must be done in stages, and sufficient subsidies must be reintroduced when crude oil price goes upwards.
On Thursday, Secretary-General of Ministry of Domestic Trade, Cooperatives and Consumerism, Datuk Seri Alias Ahmad, said that the global crude oil price trend since November 1 is expected to result in a cut between three and four sen for the RON95 on December 1 from the current price.
Last week, Minister of Domestic Trade, Cooperatives and Consumerism, Datuk Seri Hasan Malek, said the retail prices for RON95 petrol and diesel would be fixed on a managed float system from December 1, as the government will no longer subsidise both.
