FUEL PRICE UP AGAIN

Within 12 months, fuel price of RON 95 and Diesel has gone up by RM0.20 per litre effective 02 October.

Motorists lined up to fill their tanks to save 10% just before midnight on 01 October.

The Federal Domestic Trade, Co-operatives and Consumerism Minister explained the reason for the sudden increase:

"This move is in line with the subsidy rationalisation plan by the government to ensure that the country’s finances remain strong"
 
"The new prices would save the government at least RM1.1 billion".
 
"The increase in the prices of RON95 petrol and diesel is not to burden the people but rather to strengthen the financial status of the country."

"The move is aimed at preventing fuel smuggling to ensure the current subsidies of the commodity is not abused by irresponsible parties."

The Prime Minister said "Every action of the Government, including to reduce fuel subsidy, is meant for the benefit of the people. 

The reaction from the NGOs and the people has been otherwise:

The President of Kota Kinabalu Chinese Chamber of Commerce and Industry said: "The public who drive to work will now have to fork out 10 per cent more for monthly expenses because of the increase in fuel price."

"The increase in the fuel price will raise the cost of transport. As a result, price of goods will be marked higher in order to offset the cost increase".

“The fuel price hike will be a heavier burden for the people!"

“It is regrettable that our people (having to bear the higher cost of fuel and goods) despite the fact that Malaysia is an oil-producing country.”

The Sabah Consumer Affairs and Protection Society expressed its disappointment on the sudden increase of fuel prices. Its president, said that the increase was done without any notice or prior information to consumers.

“It is common that each time there is a price hike in fuel, other prices of goods will also go up due to the increase in production and transportation costs. This price hike is a burden to the people, particularly those with low income,” he said.

Sabah Progressive Party (SAPP) President said that Sabahans will experience more hardships in trying to cope with another round of spiraling price rises caused by yet another fuel hike.

“The impact of fuel hikes is not only on motorists. Fuel rises always have a chain effect on any goods and services that move. Sabah’s vast geography and bad roads add to the costs of transportation."

“The sad thing is that Sabah as an exporter of oil should logically benefit from rising oil prices in the world market. How is it that Sabah stands to lose out when oil prices go up?”

In my opinion, the fuel hike is definitely a burden as I will have now to pay at least an additional RM40 per month for diesel. My additional expenditure will be RM480 per year on fuel alone.  

The worst is yet to come. By April 2015, "GST" will be implemented - another burden to the lower and middle income groups