Thursday, June 12, 2008

Fuel price increases capped

PUTRAJAYA: There will be no further increase to the price of fuel in the country this year. This is despite the possibility of the global price of oil reaching US$200 (RM654) per barrel, as forecast by some analysts.

This latest decision by the Cabinet came on top of various measures announced on Monday to help the Government cut costs and channel more subsidies to low-income earners.
Prime Minister Datuk Seri Abdullah Ahmad Badawi said to stem any more increase, the Government would have to think of alternative ways to finance its spending.
“Since the Government announced the new price last week, fuel prices have gone up to US$139 per barrel and is still hovering at US$130.
“In fact, the price of oil is expected to remain at high levels in the months to come. The high price of oil means that the market price of petrol at the pumps have now reached RM3.45 per litre,” he said, pointing out that the price should be reviewed to RM3.15 per litre (with a discount of 30 sen) instead of RM2.70 beginning next month.
“However, the Government realised that the rakyat is still trying to adapt to the higher petrol prices. The Cabinet has thus decided there will be no more increase this year,” he told reporters at his office yesterday.
If the global price of petrol should ever drop, Abdullah said the Government would make the necessary adjustments with the 30 sen discount still being given.
When announcing the new petrol price on June 4, Abdullah had said that prices at the petrol pump would be adjusted monthly to reflect the global market price.
The current price for petrol is RM2.70 per litre while diesel is sold at RM2.58 per litre, following an increase of 78 sen and RM1 per litre respectively last week.
Abdullah said it had also been decided that the more than one million civil servants would receive their salaries fortnightly effective August.
“The first instalment will be in the middle of the month while the second will be at the end of the month. Deductions such as income tax and Employees’ Provident Fund will be made from the second instalment.”
Source - The Star : By MAZWIN NIK ANIS and SIM LEOI LEOI

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