Press Digest - Calls for govt to disclose fuel pricing formula

PETALING JAYA: Two economists have urged the government to disclose the fuel pricing formula, saying this will not only clear the public's doubts but also make it easier for businesses to calculate their operational costs.
They felt that the lack of transparency in the mechanism used to determine fuel prices not only led to doubts and speculation among the public but also affect the government's credibility, resulting in the widening of its credibility deficit, Nanyang Siang Pau reported today.
Great Vision Advisory Group's head of Tax & Financial Consulting, Datuk Chua Tia Guan, said the hike in fuel price for February was puzzling as the Brent crude oil prices were stable for the last two months and the world oil prices had moved within a narrow band.
The government had announced a 20 sen increase for both RON95 and RON97 petrol and a 10 sen hike for diesel for February, bringing the pump prices to RM2.30 a litre for RON95, RM2.60 a litre for RON97 and RM2.15 a litre for diesel.
The latest fuel prices are highest since the beginning of 2016.
Independent economist Lee Heng Guie was as baffled as Chua over the 40 sen increase in petrol price in less than two months when the world crude oil prices was maintained around RM55 a barrel and wondered aloud what formula was used to determine the pricing.
He said the fuel price hikes will put additional pressure on the Joe Public who are already living from hand to mouth.
"To avoid unnecessary speculation, the government should make the fuel pricing formula public.
"The public are very sensitive to the movement of fuel prices," he said.
Meanwhile, the Barisan Nasional (BN) strategic communications team, in parrying the Opposition's attacks over the latest fuel price hike, said the pump prices now are based on the prices of finished (refined) oil products.
It said consumers will benefit only when the prices of finished oil products drop.