Press Statement by Lim Guan Eng in Petaling Jaya on Wednesday, 3^rd December 2008: 

Datuk Seri Abdullah Ahmad Badawi should reduce the price of petrol by 48 cents to RM 1.52 per litre, not a mere 10 cents to RM 1.90 per litre and allow a daily revision of petrol prices to allow the people to benefit from the declining international price of oil   

Prime Minister Datuk Seri Abdullah Ahmad Badawi should reduce the price of petrol by 48 cents to RM 1.52 per litre, not a mere 10 cents to RM 1.90 per litre and allow a daily revision of petrol prices to allow the people to benefit from the declining international price of oil. Crude oil price dropped to a three-year low to under US$48 per barrel yesterday, down by almost US$100 from its peak of US$147.27 hit on July 11.

Based on historical trends at a price of USD 48 per barrel, the petrol price should be RM 1.52 per liter set on 5 May 2005, and not RM 1.90 now as shown by the following chart published in anilnetto.com,
 

	Petrol price	Global crude
	RM/litre	US$/barrel
01/10/00	1.20	35
20/10/01	1.30	20
01/05/02	1.32	26
31/10/02	1.33	28
01/03/03	1.35	31
01/05/04	1.37	38
01/10/04	1.42	47
05/05/05	1.52	48
30/07/05	1.62	57
26/02/06	1.92	63
05/06/08	2.70	120
17/11/08	2.00	55

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad’s recent revelation that at US$65 (RM235) per barrel or at RM 2 per litre the Government will save more than RM 10 billion. How big these savings can be seen with fuel subsidies in October 2008 amounting to RM 610 million, compared with RM 3 billion in May 2008when oil prices peaked.

The people have a right to enjoy the RM 10 billion in savings and also the record profits of Petronas with a record pre-tax profit of over RM 63 billion.in the six months ended Sept 30. Petronas’ cash, fund investments and other investments by rose by RM 23 billion to a total of RM 124.7 billion from a year ago, enough to pay off more than half the national debt of about RM 220 billion that comprises all government and private sector debts.

Malaysians are already suffering from paying high prices such as electricity tariffs and gas prices despite the drop in world prices. Datuk Seri Abdullah Ahmad Badawi should allow the people to benefit from the RM 10 billion in fuel subsidy savings and the record earnings of Petronas with a daily revision of petrol prices and reduce petrol price to RM 1.52 per liter to reflect the declining oil market.

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* Lim Guan Eng, DAP Secretary-General & Penang Chief Minister