Prices of RON95, diesel, LPG stay for now
By Hemanabthani Sivanandam, The Sun
PUTRAJAYA (May 25, 2011): The prices for RON95, diesel and liquefied petroleum gas (LPG) will remain for now, said Domestic Trade, Co-operatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.
Following a detailed discussion in Cabinet today, the government decided against any price increase after taking into consideration the interests and the needs of the people.
Ismail Sabri however did not specify how long the postponement of the fuel cut subsidies will be, adding that it was not discussed during the weekly meeting.
“However, the government will continuously study the subsidy rationalisation due to the increase of global fuel prices,” he told a press conference in his ministry.
Asked if there will be further reduction in subsidies if the global fuel price increases, he said that the government will “cross the bridge when we get there”.
“If it increases drastically, we will see. That is why I said the (subsidy rationalisation) study is continuous,” said Ismail Sabri.
He also urged the public not to speculate on the matter as the government will take into consideration all angles before making a decision on the matter.
“The people should trust the government because we are a government that listens to the needs of the people. We are always concerned for the rakyat, so let’s not speculate,” he added.
Currently, the price of RON95 is RM1.90 per litre, diesel is RM1.80 per litre and LPG is RM1.90 per kg.
The last revision for RON95, diesel and LPG was in December 2010.
Speculation was rife that the Cabinet is expected to further reduce subsidies this week. Last week, Ismail Sabri said that the government will review prices of all petroleum products this week, adding that the Performance Management and Delivery Unit (Pemandu) would determine if prices would be maintained or increased.
He was quoted as saying that there would be a revision every six months for the subsidy rationalisation plan for all subsidised products.
Even Deputy Prime Minister Tan Sri Muhyiddin Yassin had warned that Malaysians should brace themselves for further reduction in subsidies.
Asked if the postponement was a cautious move in view of the impending general election, Ismail Sabri brushed it off, stressing that the government was concerned about the needs of the people.
When asked if the Cabinet had discussed other matters such as the electricity tariff hike and other subsidy cuts, Ismail Sabri said it had not done so.
