Big Surprise to Malaysian! Petro Hike!

This is a big surprise to all malaysians on 28 Feb 2005. Our lovely government make a surprise announcement by raising our petro/diesel/LPG prices by additional 30 cents.

The news reported by Bernama:

February 27, 2006 23:14 PM

Petrol Price Up Again

KUALA LUMPUR, Feb 27 (Bernama) -- The retail price for petroleum products including diesel will be raised by another 30 sen effective Tuesday.

"The government has decided to raise the retail price of petrol and diesel by 30 sen per litre and the price of LPG by 30 sen per kilogram effective tomorrow (Tuesday)," said a statement from the Prime Minister's Office Monday night.

The increase was to tackle the impact from the increase in the price of crude petroleum in the world market and to curb the increase in subsidy which had to be borne by the government, the statement said.

However, the statement said that the government gave an assurance that there would be no further raise in the retail price of petroleum products this year.

The last time the government raised the retail price of petroleum products was on July 31, 2005 where the price of petrol went up by 10 sen per litre, diesel by 20 sen per litre and LPG by five sen per kilogram.

The new price of RON 97 petrol is now 192 sen per litre, RON 92 Petrol -- 188 sen per litre, Diesel -- 158.1 sen per litre and LPG -- 175 sen per kilogram.

In Sabah, RON 97 Petrol will cost 190 sen per litre, RON 92 Petrol -- 188 sen per litre, Diesel -- 158.4 sen per litre and LPG -- 183 sen per kilogram.

In Sarawak, RON 97 Petrol will cost 191 sen per litre, RON 92 Petrol -- 188 sen per litre, Diesel 157.8 sen per litre and LPG -- 183 sen per kilogram. All the new prices are higher by 30 sen.

"The retail price for petroleum products is being raised because in 2005 the amount of subsidy borne by the government was RM7.41 billion. Whereas tax exemption stood at RM7.85 billion.

"The burden of subsidy and tax exemption borne by the government from January to February 2006 was RM1.19 billion and RM1.44 billion respectively," the statement said.

The statement said that without subsidy and tax exemption provided by the government, the retail price of these products in March 2006 would be higher.

Without the subsidy and tax exemption, the price of RON 97 in the peninsula would have been RM2.46 per litre, RON 92 -- RM2.37 per litre, Diesel -- RM1.98 per litre and LPG -- RM3.21 per kilogram.

In Sabah, RON 97 petrol without subsidy and tax exemption would have been RM2.45 per litre, RON 92 -- RM2.37 per litre, Diesel -- RM1.97 per litre and LPG -- RM3.35 per kilogram.

In Sarawak, the price of RON 97 petrol without subsidy and tax exemption would have been RM2.45 per litre, RON 92 -- RM2.36 per litre, Diesel -- RM1.97 per litre and LPG -- RM3.34 per kilogram.

"Although the government is raising the price of petroleum products, diesel and LPG, the price of petrol and diesel in Malaysia is still cheaper compared to the price of most of these products in the Asean countries except for Brunei Darussalam," the statement said.

The statement also said the price of petroleum products in several other countries, including Asean countries, was higher than in Malaysia. per litre), diesel (RM2.28 per litre) and LPG (RM1.65 per kilogram).

In Thailand, the price of RON 97 petrol is RM2.52 per litre, RON 92 (RM2.45 per litre), diesel (RM2.28 per litre) and LPG (RM1.65 per kilogram).

The price in the Philippines is RM2.21 per litre for RON 97 petrol, RON 92 (RM2.20 per litre), diesel (RM1.95 per litre) and LPG (RM4.90 per kilogram).

In Singapore, it is RM4.15 per litre for RON 97 petrol, RON92 (RM3.89 per litre), diesel (RM2.39 per litre) and LPG (RM5.32 per kilogram) while in Brunei the price for RON 97 petrol is RM1.22 per litre, RON 92 (RM1.19 per litre), diesel (RM0.71 per litre) and LPG (RM1.40 per kilogram).

In Indonesia, it is RM2.30 per litre for RON 97 petrol, RON 92 (RM2.20 per litre), diesel (RM1.68 per litre) and LPG (RM1.89 per kilogram).

The statement said the government had also introduced a diesel subsidy system for 84 per cent of vehicles in the land transport sector comprising public transport operators and consumer goods services through the use of fleetcards.

"With the use of fleetcards, they are able to buy diesel at a subsidised price of 15 sen lower than the fixed price," it said, adding that the Domestic and Consumer Affairs Ministry had issued a letter to inform the eligible operators of the matter.

The Prime Minister's Office also said the financial savings from the increase in the price of petroleum products would be used to finance development projects and improve the public transport system for the benefit of the people.

-- BERNAMA

Can you believe it? 30 cents increase which is about 18.5% price increase for our petro comsumption. Sometimes, it is a controversal issue that our govertment encourage citizens to own private transportation. We are proud to be the number 1 in South East Asia for the car industry by car ownership growing. However, government complaint that the subsidy for the petro consumption is increasingly burden. Come on! as a oil producer country, we should be able to earn extra income for the oil price industry so that the income of government for tax on oil & gas should be able to offset the subsidy cost.

Government saving on subsidy has put a increase burden to individual living expenses. The reason is simple, cost increase for business, price for everything will adjust upward except "your salary". This is a fact for the past decade. our relative hard earn money is getting smaller and smaller compared to last few decade. Try to imagine that you father is earning $2000 per month 20 years back and he is afford to buy house, car and provide you education. Can you do it now? Our fresh graduate is earning about the same or less now for a monthly salary.

What is happenning? let our expert to explain. If you know the reason for this, you are welcome to give comments.

As a "rahyat", what can we do? we can only accept the government decision! hopefully what government promise and it will deliver~~