Hornbill Unleashed

October 3, 2014

Fuel subsidy reduction a good move to prevent leakage, says Dr M

Filed under: Politics — Hornbill Unleashed @ 8:00 AM
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Dr Mahathir explains that the cost of living does not rise only because of the increase in fuel costs, as increase in wages will also drive manufacturers to raise their prices. - The Malaysian Insider pic, October 2, 2014.

Bernama via TMI

Dr Mahathir explains that the cost of living does not rise only because of the increase in fuel costs, as increase in wages will also drive manufacturers to raise their prices.

The fuel subsidy reduction of 20 sen per litre in the price of petrol and diesel has received the thumbs up from Tun Dr Mahathir Mohamad.

The former prime minister said the move was appropriate in order to avoid financial leakage and misappropriation of the subsidised fuel, Bernama reported today.

Speaking to reporters in Kota Baru, he said that if the subsidies were not reduced, the fuel supply would continue to be manipulated by certain quarters to reap profits, especially through cross-border smuggling of the fuel to neighbouring countries.

“Oil is cheap here. Even in oil-producing countries like the Arab countries, the price is higher than here. How could we sell oil cheaply? That’s why there are people stealing our oil. Everyday, they steal,” he was quoted as saying by Bernama.

Dr Mahathir was in Kota Baru to deliver the keynote address at a forum entitled The Importance of the English Language in the 21st Century, the Digital Era, at Wadi Sofea College.

Also present were Universiti Malaysia Kelantan vice-chancellor Prof Datuk Dr Raduan Che Rose and Wadi Sofea College head Datuk Hassan Harun.

The Domestic Trade, Cooperatives and Consumerism Ministry had announced yesterday that the subsidy for petrol RON95 and diesel was reduced by 20 sen per litre, effective today. The result is an increase in the price of RON95 petrol, from RM2.10 to RM2.30, and diesel, from RM2 to RM2.20.

According to Bernama, Dr Mahathir said the fuel subsidy reduction should not be seen as the main factor for the rising cost of living.

“Costs will increase all the time. We cannot ask for pay rise and costs be reduced at the same time. Even the minimum wage has gone up. The production costs of goods go up when people’s salaries are increased,” he said, the national news agency reported.

Speaking on the political situation in Selangor, Dr Mahathir, who is also Proton chairman, said the state Umno should have done something worthwhile when Pakatan Rakyat was in the midst of a crisis.

“I’m saddened to see Umno not gaining anything during Pakatan’s political disarray.

“What has happened to Umno? It seems weak and not able to recover to rule the state again. Previously, we controlled Selangor and now we have no chance even when others are divided,” he was quoted as saying by Bernama.

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2 Comments »

  1. Keep voting for UMNO Baru and their incredibly stupid spitting into our faces……………..and your children will be curisng you for generations to come! The root causes of the deficit in the government budget is corruption, wastages and leakages (total and deliberate mismangement) but as far as UMNO Baru is concerned, it is always someone’s else fault!

    Comment by Vinoo — October 6, 2014 @ 6:06 PM | Reply

  2. For decades Malaysians were made to pay dearly for massive corruption in the government, mismangement, endless financial and investment blunders and cronyism. When a corrupted and incompetent government can remove a made belief or imaginary subsidies the rakyat can also remove a highly corrupted and incompetent government with our voting right. What are we complaining about when we can remove a highly corrupted, incompetent and irresponsible government to solve the subsidy issue with just the ballot paper .

    If we want petrol price and the high cost of living to ” turun ” and our ringgit to strengthen, just DUMP UMNO Baru controlled BN in Sarawak.

    Comment by Awaken Dayak — October 5, 2014 @ 7:39 PM | Reply


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