‘Irresponsible’ of Putrajaya to abolish petrol subsidies, says PKR youth

PKR Youth today described the government's move to do away altogether with petrol subsidies as “irresponsible”, questioning Putrajaya's commitment and priorities in light of the financial burden it would create for the people.

“The government’s decision to stop subsidies for RON95 and diesel is an irresponsible move, especially taking into account the impending implementation of GST (Goods and Services Tax) next year,” PKR Youth chief Nik Nazmi Nik Ahmad said in a statement.

“The rakyat will be burdened with multiple price increases.”

Nik Nazmi said that Putrajaya had victimised the people with the move and failed to explain itself despite the many questions raised over government spending.

“While the subsidy rationalisation steps began several years ago, the government’s spending has never gone down,” he said.

“For the 2014 Budget, the government had tabled a budget of around RM264 billion in total, not including the supplementary budgets tabled later. In 2015, the government allocated a budget of almost RM274 billion,” he said.

Nik Nazmi said the government was abolishing petrol subsidies even as graft and leakage continued unabated, citing the controversial 1Malaysia Development Berhad (1MDB).

“Hence, PKR Youth urges the government to reveal the mechanism used to determine the petrol prices, the amount paid by Petronas to the government since it was formed, and where the money went,” he said.

PKR secretary-general Rafizi Ramli yesterday said that the government was doing its best to embezzle Malaysia’s wealth by abolishing subsidies.

"The issue of petrol and diesel subsidy in Malaysia is not just limited to an economic decision of whether subsidies are good or bad for Malaysia's economy.

"The bigger issue at hand is whether the country's oil and gas wealth is shared with the public and not just squandered by Putrajaya," Rafizi had said.

The current retail price of RON95 is RM2.30 a litre while diesel retails at RM2.20 a litre.

Putrajaya's announcement means the average price of RON95 per litre based on global prices from November 1 to 19 is RM2.27 a litre. – November 22, 2014.