Disclose fuel price mechanism now

Media statement by DAP National Political Education Director and MP for Kluang Liew Chin Tong on 21st November 2014

The DAP cautiously welcomes the potential reduction of RON5 and diesel pump prices and calls on the Barisan Nasional Government to disclose the new managed float system immediately.

First, the DAP cautiously welcomes the potential savings for consumers as the global crude oil price has already fallen below the current pump price of RM2.30 for RON95 and RM2.20 for diesel. As repeatedly highlighted by DAP and Pakatan Rakyat since 31st October 2014, Malaysians are indeed already paying a “fuel tax” without one being imposed.

Second, the Government must disclose the formula for the managed float, which industrial players call “dirty float”, for greater transparency.

Third, the Government must also draw up a plan of what it would do in the event that the petrol price rises again to ease the burden of the people.

Fourth, in the long run, the Government must invest a lot more to create an efficient and affordable public transportation system so that the Malaysian public will rely less on private vehicles, hence end our dependence on petroleum.

In hindsight, the criticism against the recent October 2014 petrol hike by the Opposition is proven right that the Government was raising pump prices at a time when global crude oil prices were falling. After the ensuing panic arising from the chain effect of the price hike, the government is now forced to make a u-turn.

Also, the foolish FuelSubs contract for targeted subsidies is by now totally overtaken by events, this clearly illustrated the shallowness of thinking on the part of the Government.

And, since through this move the Government recognised that the global crude oil price is likely to continue to fall, I would like to renew the call for Prime Minister and Finance Minister Datuk Seri Najib Razak to present a revised Budget 2015 to Parliament as both the subsidy figures and revenue estimates are far off from original estimates.

Liew Chin Tong