DAP MP moots competitive free float system for fuel prices
(Malay Mail Online) – A DAP lawmaker urged Putrajaya today to use a free float system to allow competitive fuel pricing subject to a price ceiling so that consumers can enjoy the lowest market price for petrol and diesel.
DAP’s Petaling Jaya Utara MP Tony Pua said Deputy Finance Minister Datuk Chua Tee Yong was giving “flimsy” excuses for the government to maintain a managed float system, pointing out that countries like Singapore, Indonesia, Australia and the UK have no problems with their petrol pump prices fluctuating on a daily basis.
“Is (it) because he believes that Malaysians are ‘stupid’ as alleged by none other than former Prime Minister Tun Dr Mahathir Mohamad himself?” said Pua in a statement.
“Or is it more likely that the government wants to maintain a managed float, or perhaps more aptly known as a ‘dirty float’ as highlighted by my colleague, Member of Parliament for Kluang, Liew Chin Tong, because it wants to collect hidden taxes from the rakyat to cover the government’s budget deficit?” added the DAP publicity chief.
Liew said last Monday that the rise in diesel price despite falling RON95 and RON97 prices when Putrajaya’s managed float came into effect showed that the mechanism was a fuel tax in disguise.
According to Liew, the inconsistent movement in the prices of the two types of fuel despite a steady fall in oil price demonstrated why a managed float was dubbed a “dirty float” by industry insiders.
Pua said today that Putrajaya likely wanted to maintain a managed float because the drastic drop in global oil prices has dented the government’s revenue collection, noting that oil revenues comprise 30 per cent of the government’s total revenue.
“This hidden tax is most unethical and unscrupulous on the part of the government because the rakyat do not know how much they are being taxed, and the tax rates could vary from day to day, week to week.
“Nobody can say for certain whether they are taxed at 2 per cent or 6 per cent or 10 per cent or even more,” he added.
The federal lawmaker said the so-called “hidden fuel tax” was an even more unreasonable taxation system than the goods and services tax (GST).
“In the past, the government claimed that the petrol kiosks are not allowed to compete because the fuel prices are subsidised. Now that there are no more subsidies, this ‘excuse’ (is) also no longer valid,” said Pua.
Putrajaya last month announced that direct fuel subsidies for consumers will be eliminated completely starting today, with prices set using a managed float similar to that employed for RON97 since July 2010.
