Fuel prices reduced by 10 sen

KUALA LUMPUR: The retail price of petrol and diesel will be reduced by 10 sen a litre each effective Wednesday, Prime Minister Datuk Seri Abdullah Ahmad Badawi has announced.

The price of petrol RON97 will be reduced from RM2.00 a litre to RM1.90, RON92 petrol to RM1.80 from RM1.90 and diesel to RM1.80 from RM1.90.
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Bus fare would be increased next year - Noh Omar

KUALA LUMPUR: The express bus fare increase early next year may be unavoidable despite the fuel price drop.

Entrepreneur and Cooperative Development Minister Datuk Noh Omar said the increase or drop in oil price had no connection with public transport fares as the operating costs had been rising, which was the main reason for the bus fare increase.

“The demand made by express bus operators to increase the fare is just not because of the fuel price increase (since before June this year) but the rising operating costs like for batteries, tyres and insurance.

“We take all these factors into consideration and there’s a big possibility that the bus fare will go up next year despite the drop in fuel price,” he said in reply to Salahuddin Ayub (PAS-Kubang Kerian) in the Dewan Rakyat on Tuesday.

Salahuddin had asked whether the government planned to reduce the express bus fare nationwide in view of the drop in oil price.

Noh said the last time the bus fare structure was reviewed was in 2005 and the time had come now for the Government to consider express bus operators’ request for another review.

However, he said, the Government would ensure that it would not burden the people, especially the poor, the main users of public transport.

“Yet, we have to consider the problems faced by the bus companies, which after running at a loss, may have to sell off some of their buses and reduce trips or even be forced to fold up. In the end, the people will suffer.”

To the original question from Abdul Aziz Abdul Kadir (PKR-Ketereh), Noh said there were now nine express bus companies with 157 buses plying the Kota Baru-Kuala Lumpur route.

He said the number of trips was fixed according to the number of passengers using the service but normally, each bus made 30 trips per week.

“When there are not that many passengers, the bus operators will reduce the trips to save cost.” -- Bernama
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Malaysians force to donate to avoid govt policy from collapse - ref Malaysiakini

KUALA LUMPUR — Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad revealed today the government has stopped subsidising petrol since Nov 1 and has been effectively collecting taxes instead on petrol consumption.

Speaking to reporters in Parliament, he explained that even after the 15-sen drop today, which saw RON97 petrol dropping to RM2 per litre, and RON92 and diesel down to RM1.90, the government was no longer subsidising petrol at the pumps.

"Even if prices return to RM1.92, we will still have a bit of surplus," he said, adding that subsidies had disappeared once the global price of oil had dipped under US$65 per barrel.

Current prices are hovering at US$55 per barrel.

As oil companies take a 19-sen cut and fuel station operators take 12 sen, it can be inferred that the cost price of RON97 petrol is currently below RM1.61 if the government can still generate income at RM1.92.

Shahrir explained that the difference between petrol pump prices and the cost plus commission for the companies and operators was being returned to the government effectively as a form of tax.

This gels with the 2009 Budget winding-up speech by Finance Minister Datuk Seri Najib Razak where he claimed a projected RM7 billion savings in fuel subsidies will be utilised to stimulate the troubled economy.

The statement was puzzling as the government had earlier said it would maintain a 30-sen fuel subsidy to keep pump prices below market prices.

Shahrir also projected that with RM21 billion budgeted for fuel subsidies in 2009 and subsidies for 2007, when prices had averaged US$65 per barrel, amounting to RM8.8 billion, savings from fuel subsidies would be far more than RM7 billion.

"If crude oil stays under US$60 per barrel, I am expecting at least RM10 billion," he said.

He also added that subsidies for diesel and natural gas are still in place.

Shahrir, however, explained that this did not mean that the people were not being helped by the government.

"We are still giving the RM625 road tax rebate for cars and RM150 for motorbikes that goes straight into your pocket," he said, referring to the rebate announced when RON97 shot up to RM2.70.

"So the rebate is for when the people suffered for about three months," he said.

The Johor Baru MP had called a press conference to announce that a total cost of RM21.4 billion had been incurred by the government up to October this year due to tax exemptions and subsidies for fuel against RM16.2 billion last year.

This, however, is without tax exemption figures for October 2008.

He also said that government would consider a floor price for fuel.(TheMalaysianinsider)

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Petrol price should not be less than RM1.92/L - Shahrir

PETALING JAYA (29 Oct): The minimum price of petrol should be RM1.92 per litre even if the global oil price continues to fall, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said.

He said this would bring some stability to the retail price of petrol and minimise losses by petrol station owners.

Setting a minimum price would also enable the Government to reduce its subsidy on petrol if the global price fell further.

“The upper limit will be RM2.70 and it is my feeling that this is the optimal range,” Shahrir said when commenting on the losses petrol station dealers face whenever the price of petrol is reduced.

Ahmad Sarpur, a dealer in Johor, said dealers could lose between RM13,000 and RM25,000 each time petrol is reduced by 15 sen per litre.

“This is because there is a minimum order quantity of 21,000 litres that we must pay for immediately. There is no credit,” he said.

“If the petrol is delivered in the morning and the price is reduced at night, we have to sell petrol 15 sen cheaper than what we had paid for it.”

However, Shahrir said the Govern ment had been fair to the dealers saying: “We have not reduced their margin of 12 sen per litre after it was increased in June and we will try as much as we can to keep upcoming price reductions to 15 sen at a time.”

Shahrir said this meant a minimal loss of three sen per litre.

Ahmad pointed out that it was difficult for dealers to hedge on prices as they were not given prior notice of price changes. He said the dealers should be given three days’ warning before a price change to carry their optimal amount of stock.(TheStar)

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I will reduce the petrol price by 70 sen - Anwar

A few days after the government announced plans for a new petrol pricing mechanism beginning Sept 1, Datuk Seri Anwar Ibrahim pledged to reduce the current price by 70 sen if he is in power.

Launching his pre-election campaign here, the Parti Keadilan Rakyat de facto leader in his homecoming ceramah in the Permatang Pauh parliamentary constituency said last night that price could be lowered due to falling global oil prices.

"Three weeks ago 50 sen but now we can reduce it by 70 sen," he told his supporters of the promise that he would fulfill should Barisan Nasional MPs cross over to his Pakatan Rakyat side.

Anwar is now fully geared to contest in the constituency vacated by his wife, Datuk Seri Dr Wan Azizah Ismail, also PKR president, to make way for him to return to Parliament. The Election Commission will decide nomination and polling dates this Wednesday.

On July 15 at a televised debate with Information Minister, Datuk Ahmad Shabery Cheek, Anwar promised to cut petrol price by 50 sen through financing from a RM5 billion fund generated from the independent power producers' extra capacity as well as stopping leakages from corruption.

Last Friday Prime Minister Datuk Seri Abdullah Ahmad Badawi announced the plans to put a cap of RM2.70 a litre this year and keeping the 30-sen a litre subsidy while reviewing local fuel prices against global market price on a monthly basis.

Anwar also hit out at critics accusing him of bribing BN lawmakers and being in a hurry to be prime minister.

"Yes, I can't wait; I can't wait to reduce the petrol price. Is it wrong to promise to reduce the petrol price? We are not trying to bribe the MPs," he said.

Anwar, who is facing fresh sodomy allegation by his former male aide, dropped another hint about his future and freedom.

A section of the crowd listening intently.

"I don't know whether I will be free to campaign but according to the law, I am eligible to contest," he said.

The former deputy prime minister also told Permatang Pauh voters to be prepared for a dirty election campaign mounted by Umno.

"Do not resort to racial politics, I am warning them," he told the multiracial crowd last night. He also reminded the Malay voters not to be taken in by Umno's propaganda that he was no longer interested in defending the Malay rights.

On allegations against him that he was selling out the Malays to the Chinese and Indian communities, Anwar said: "Yes I am a Chinese agent, I am a Malay agent, I am an Indian agent; I am the people's agent."

"On polling day, you decide whether Malaysians can remain united," he said.

He also urged Gerakan and MCA to abandon Umno for the sake of the nation, adding that his plan to take over the federal government by September 16 was still on track.

Before leaving the venue, Anwar appealed to the crowd to assist in the coming by-election campaign. "I hope all of you can come and help at the operation centres," he said.

Excerpt from http://themalaysianinsider.com/index.php/headlines/42-lead-stories/2514-anwar-promises-to-reduce-petrol-price-by-70-sen-
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Fuel price may drop following world crop fuel prices

Falling world crude prices has prompted the Cabinet to consider cutting pump prices in Malaysia that had sparked a record 27-year-high inflation rate last month.



Several Cabinet ministers said a reduction in pump prices was discussed during the weekly meeting yesterday but declined to elaborate, saying Prime Minister Datuk Seri Abdullah Ahmad Badawi would make an announcement soon.

The government raised petrol prices by 41 per cent and diesel prices by 60 per cent early June, prompting protests and drove inflation to 7.7. per cent for that month as higher transport costs pushed other prices. Petrol is now sold at RM2.70 a litre from RM1.92 previously, while diesel shot up one ringgit to RM2.58 a litre currrently.

The government had said it could not afford fuel subsidies due to the soaring crude prices but is stilll providing a 30-sen discount to the market rate.

Crude oil fell from its lowest close in 12 weeks yesterday on speculation demand in Asia and the US may slow after near-record prices reduced consumption.

A US Energy Department report today may show that gasoline supplies rose for a fifth week, according to a Bloomberg News survey. Gasoline use has slipped for 14 straight weeks as high pump prices kept people closer to home, MasterCard Inc reported yesterday.

"The key consideration in the market this week has been demand destruction,'' said Christopher Bellew, a senior broker at Bache Commodities Ltd in London. "All the warning signs about the US economy have prompted speculators to reduce their exposure so that the next layer of support is at US$117 (RM386).''

Crude oil for September delivery fell as much as 94 cents, or 0.8 per cent, to US$121.25 a barrel on the New York Mercantile Exchange. It was US$121.94 at 12.52pm London time. On Tuesday, it fell US$2.54, or 2 per cent, to US$122.19 a barrel, the lowest close since May 6. Prices have dropped more than US$25 a barrel, or 17 per cent, from their July 11 record.

Higher Education Minister Datuk Seri Mohd Khaled Nordin said the Cabinet discussed lower pump prices and the mechanics was being worked out which Information Minister Datuk Shabery Cheek confirmed but declined to elaborate.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said Abdullah would make the announcement at an appropriate time. He was quoted on Tuesday as saying the government might reduce fuel prices if crude oil prices stay at US$125 per barrel for at least three weeks.

Shahrir said if that was the case then a reduction in prices could come within the year to enable the Government to keep its pledge of maintaining a 30-sen per litre subsidy.

"Why not, it would be good news, right?" he told the Bloomberg News service.
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