Shahrir: No more petrol subsidy

Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad revealed that the government has ceased petrol subsidies since the start of November - as global crude oil price has dipped below US$65 per barrel.

At a press conference in Parliament, Shahrir explained that even with the decision to drop prices by 15 sen from today, the government need not continue its subsidy.

Consumers now pay Rm2 for RON97, and RM1.90 for diesel and RON92.

He added that the government might still make a "a bit of income" if prices shrink back to pre- June 5 prices - of RM1.92 for RON97.

"The petrol subsidies disappeared once the global price of crude oil went down to US$65 per barrel," said Shahrir, explaining now the price is at US$55 per barrel.

At present cost price of RON97 is below RM1.61 - therefore even after considering the 19 and 12 sen revenue per litre apportioned by the energy companies and kiosk operators - the government can marginally profit at a RM1.92 price per litre.

Separately, the energy companies and kiosk operators pay the government in the form of taxes.

Shahrir’s statement was a departure from what the deputy prime minister cum finance minister elaborated in his Budget 2009 winding-up speech on Nov 4.

Najib Abdul Razak reiterated that the government would maintain a 30 sen fuel subsidy.

Car And Bikes Rebate Remains

When asked on savings from a no-subsidy policy in the current climate, Shahrir disclosed that it would be more than RM7 billion.

He was calculating based on what was the government’s subsidy bill in 2007 when crude oil prices averaged US$65 per barrel - which is similar to the present price levels - which was RM8.8 billion.

Therefore the RM21 billion subsidy projected for 2009 will markedly drop at this rate.

"If crude oil stays under US$60 per barrel, I am expecting at least RM10 billion (in savings)," he said.

He also added that subsidies for diesel and natural gas are still in place especially for public transportation.

Also retained are the car and motorbike rebates.

"We are still giving an RM625 rebate for cars and RM150 for motorbikes that goes straight into your pocket," he added.

He revealed the government is mulling a floor price, in lieu of a unstable global crude oil price.

"The government will have a discussion to decide what sort of policy or strategy in this floor price plan," he added.

TP - aku tak nak komen lagi pasai kenyataan menteri rambut putih ni tapi aku nak komen pasai gambaq dia kat ataih tu...

*awat gambaq dia macam "count dracula" ek??? mamat ni suka "isap darah" ka???