Speech at formation Of 3 new branches in Selangor

by Lim Guan Eng

(Ijok, Wednesday): DAP urges the government to reduce the petrol price by 30 sen to the level on 28 February 2006 of RM1.62 per liter, following the drop in fuel prices to a 20 month low of US$50 per barrel to allow Malaysians to save RM4.4 billion in petrol costs. The last increase in petrol price was 30 sen per liter on 28.2.2006 when the price then was US$61 per barrel and the government saved RM 4.4 billion in oil subsidies.

There is no logic, reason or economic rationale why the government can not reduce petrol prices when the price per barrel is even lower than US$50 per barrel. The government’s refusal to reduce petrol prices when almost every country in the world is doing so demonstrates a disturbing lack of concern for the economic hardships of the people and small businessmen caused by rising prices and inflation, especially from the poorer sections of society.

Reducing fuel prices would help to lighten the financial burdens of Malaysians and put RM4.4 billion in their pockets. This RM4.4 billion savings is more meaningful contribution as it is 20 times more than the RM250 million savings from Malaysians from reductions in road tax for motor vehicles. No one can understand why the price of petrol of an oil importer like the USA is at US$60 cents per liter, only slightly higher than the US$53 cents per liter for an oil exporter like Malaysia. Where has our oil revenue and oil profits gone?

If oil prices can be increased by 30 sen last year when the international oil of price of US$61 per barrel, then there is more reason for a reduction in fuel prices when the current oil price is US$50 per barrel, more so when it is expected to go down to as low as US$40. Increasing prices when prices go up but refusing to reduce prices when prices go down will only give rise to suspicions that the government is protecting vested interests.

Failure to so would reflect badly on the Prime Minister’s sincerity and commitment towards justice and fairness in his administration, particularly in reducing the financial burden of the poor. For the government to ask Malaysians to accept the present fuel prices when every other neighbouring and foreign country is reducing fuel prices because of declining international oil prices is unacceptable and irresponsible.

The time has come for the government to distribute Petronas’ profits and allow the people to share in its profits. Petronas pre-tax profits of RM70 billion last year is so huge that even if every single Malaysian got RM 2,000 each, Petronas would still have RM18 billion for its capital expenditure and operating requirements. For Malaysians not to get a single cent from these oil resources is almost a moral outrage. Economic justice and equity demands that some sort of distributing mechanism must be worked out to ensure that Malaysian have a rightful share on their natural resources.

(24/1/2007)