Monday, November 24, 2008



Petrol: Malaysian paying even more than Americans

I refer to the Malaysiakini report 'Fuel prices not solely dependant on global crude oil prices'.
On Nov 14, it was reported that ‘according to a daily survey for the American Automobile Association, the US national average price for a gallon of regular gasoline is US$2.152.
‘In Missouri where gasoline is the cheapest, a gallon is US$1.864 and is one of nine states with average prices below US$2. The crude oil which makes up roughly half of gasoline prices was settled at US$58.24 for December 2008 delivery’.
If I were to use the conversion of one US gallon is equivalent to 3.7854 litres and one US dollar is equivalent to RM3.5965 as published by Bank Negara Malaysia on Nov 13, then one litre of gasoline in the US is only RM2.0446
According to the US Energy Information Administration, the gasoline price in the US for September 2008 consists of the crude oil at 67%, refining costs and profits at 14%, distribution and marketing costs and profits at 8% and taxes at 11%.
Assuming our Malaysian petrol does not have the tax component since it is a subsidised item and the percentage of the other components in US and in Malaysia are the same, then our petrol price should be RM1.82 per litre.
So even with the latest price cut down to RM2 per litre, we are still paying 10% more than consumers in US.
If I were to add the Malaysian government subsidy of RM0.30 per litre then the actual petrol price for Malaysia after the latest price cut is RM2.30. What is it that makes our petrol more expensive than in the US?
It is really a bad management to ask the rakyat to pay more than what they should and make money out of the sale of petrol just to fund the government projects especially during difficult times like now.
The government ought to reveal to the rakyat the components that make up the price for our petrol and diesel.
I would suggest that the government remove the subsidy and let the market determine petrol and diesel prices but set a minimum and maximum price that petrol stations can sell based on the average price of the previous week.
Meaning the minimum and maximum prices must be adjusted weekly and the difference between the minimum and maximum prices should not be more than 15%.
Perhaps the government should consider subsidy only when the petrol price goes beyond RM3 per litre.
With the latest price cut, the petrol price has fallen to almost the June 5 level while the diesel price at RM1.90 per litre is still 20% higher than the June 5 level.
Most of the transportation related costs that pushed up the prices of many consumer products are diesel related. And the costs for many raw materials were fixed when the diesel price was higher. Therefore, we cannot expect the prices of goods to fall to pre-June 5 level.
But that does not mean these prices should remain at the current level. Though it makes business sense to capture as much profit as possible at every opportunity presented, such a practice will not only hurt the consumers but in the long run, will also hurt businessmen.
So I sincerely hope that government will not make the rakyat pay more than what they should and make money out of the rakyat in this difficult times where many are being/will be retrenched.
I also hope businessmen will show their social responsibility by reducing their products’ prices where possible.

Thursday, November 6, 2008

MALAYSIA-ECONO-ISSUE.

(怡保5日讯)甲巴央区州议员陆致仁欢迎副首相兼财长拿督斯里纳吉再度宣布额外增加70亿令吉刺激国家经济配套,作为缓和全球金融风暴对我国经济构成冲击的救市拼经济措施,体现政府与民携手共渡难关的用心。
陆致仁发表文告认为,官民同舟共济是顺应时趋也势在必行刺激国家内需,否则我国各领域将不堪眼前经济风暴的一击,彻底失去竞争力,尤其是首相拿督斯里阿都拉巴达威出掌国家行政首长期间外资裹足不前,政府主要税收来自本国人民的赋税,包括节省政府对燃油的补贴以及加剧催收国人的欠款,国家经济是否持续成长或具有国际竞争力,工商界是最好的测量仪。
他说,政府动款拼经济并不是第一遭,除了纳吉10月20日宣布,借用公积金局50亿贷款扶持股市,过去还有多项类似的振兴经济配套以及国会议员特别拨款等措施,但成效未臻理想,也因一些拨款去向不详而留人诟柄。
有鉴于此,除了向财长直接报告的特别委员会,陆致仁也认同国会公共帐目委员会的看法,建议政府设立“独立检查小组”监督政府大型及资金庞大的采购项目,避免一些华而不实的白象计划,以及最近备受争议而浮出水面的耗资17亿令吉购置12架直升机计划的持续出现。
他希望纳吉提出的刺激经济配套是真诚同心救市对抗经济风暴的利国泽民的国策,不是过去假公济私照顾朋党及拯救权贵的做法,真正做到平均分配国家资源,普惠15区域,具体刺激内需自强的出发点,因为政府拨出的70亿都是来自民间的公款。

甲巴央区州议员
陆致仁 发稿