Najib: Review of fuel subsidy if Middle East unrest continues

By Teh Eng Hock, The Star

KUALA LUMPUR: The Government may have to review its budget for the fuel subsidy if the unrest in the Middle East continues.

However, the budget of RM10.3bil would stay for now, said Datuk Seri Najib Tun Razak after chairing the Umno supreme council meeting here yesterday.

“We will monitor the situation. There are no plans to increase the price of RON95 petrol at the moment.

“As for RON97, it is floated according to the market,” he added.

The Prime Minister cautioned that if there is no review of fuel prices, the subsidies forked out by the government would rise drastically.

Domestic Trade, Co-operatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob had said on Thursday that fuel subsidy could increase to RM14bil this year if the oil price continues to rise.

On the upcoming by-elections in Merlimau and Kerdau, Najib said Barisan Nasional was confident of retaining the two seats it won in the 2008 general election as the electoral trend favoured the coalition.

Najib, who is Barisan chairman, hoped the vote majority in the two seats – as in the recently concluded Tenang by-election – would increase.

“There are not many internal problems. If there were any, they had been resolved early,” he said.

On the activities of Hindraf, he said Barisan had taken steps to address the issues faced by the Indian community.

On the political unrest in the Middle East, which Najib termed as the Facebook Revolution, he said it stemmed from the discontent of the people, particularly the youths.

”They used the social networking medium to mobilise protests against the government.

“This is because there is discontent among the people, particularly youths, because they cannot find jobs or are not empowered.

“The youth should not be viewed lightly. If they are unhappy, they have the energy to demand for change,” he said.