No petrol subsidies planned

KUALA LUMPUR: There is no plans to subsidise the price of petrol for now as doing so would only hurt more on government expenditure as it has to spend around RM100 million just for giving a petrol subsidy of only five sen.
Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainuddin said the amount was big as if the government has to subsidise petrol for 40 sen, then it would cost RM800 million.
Replying to a supplementary question from Datuk Seri Hasan Arifin (BN - Rompin) who asked whether the government would consider placing a ceiling price for petrol at RM2.50 per litre, Hamzah said the government could not find the right formula to stabilise the price and put a ceiling at RM2.50.
He added the price of petrol in Malaysia had once increased to RM2.90 per litre.
"if we want to set a ceiling price at RM2.50, we will have to pay a big subsidy if the price of petrol increased to RM2.90 and maintains for a long time," he said, adding the government subsidy should only be directed to the targetted group, and subsidising petrol would not be fair to consumers in rural areas based on their consumption.
Hamzah reminded petrol kiosk operators not to hoard petrol as it is an offence under the law and action would be taken against those who do so.
Meanwhile, Tony Pua (DAP- Petaling Jaya Utara) questioned the rational behind two ministries determining the petrol ceiling price and giving contradicting statements, thus confusing consumers.
On March 4, Hamzah said the weekly oil ceiling price would be implemented on April 1.
However, Prime Minister Datuk Seri Najib Abdul Razak, who is also the Finance Minister said in a parliamentary reply that the policy is still under review.
Tony said he supported the move to implement a weekly oil ceiling price, as it would bring a lot of benefit to the consumers who are affected with the increase of oil price and essential goods.