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>> 15 Julai 2010


5-in-1 price hike: Fuel, sugar and gas up

Malaysiakini | 15 Jul, 10 6:19pm

Prime Minister Najib Abdul Razak’s administration has taken a politically risky manoeuvre by raising prices of three types of fossil fuels, sugar and cooking gas.

Both RON95 and RON97 grade petrol and diesel prices will be raised by RM0.05 per litre, while liquified petroluem gas (LPG) will be raised by RM0.10 per kilogramme.

Sugar prices will be raised by RM0.25 per kg.

All price increases will take effect from midnight tonight.

The breakdown of the new prices are:

  • RON 95 grade petrol – RM1.85 per litre
  • RON 97 grade petrol – RM2.10 per litre
  • Diesel – RM1.75 per litre
  • White refined coarse granulated sugar – RM1.90 per kg
  • Liquified petroluem gas – RM1.85 per kg

For cooking gas: (each cylinder)

  • 10kg – from RM17.50 to RM18.50, RM1.00 hike
  • 12kg – from RM21.00 to RM22.20, RM1.20 hike
  • 14kg – from RM24.50 to RM25.90, RM1.40 hike

It is learned that the Prime Minister’s Department intends to regulate the prices of RON 97 through a managed float mechanism.

Prices would then be adjusted monthly according to international oil prices.

Subsidy reduction plan

The statement added that the adjustment is the first part of the government’s plans to reduce subsidies for essential goods as proposed by the Performance and Delivery Unit (Pemandu).

Pemandu, a unit established under the Prime Minister’s Department, had warned that the Malaysia may face bankruptcy by 2019 should subsidies not be reduced.

Idris Jala, Pemandu’s chief executive officer, said that Malaysia risk becoming like Greece, which is now debt-ridden.

The Najib-administration had been working hard on its charm offensive to sell the necessity for subsidy reductions.

However, critics said forcing consumers to tighten their belts without the government undergoing an austerity drive was meaningless.

It must also be noted that this is the second time the federal government had increased sugar prices. On Jan 1, prices were increased by RM0.20 per kg.

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