Media Statement by Lim Guan Eng in Petaling Jaya on Wednesday, 4^th June 2008: 

Fuel price increase - economically inefficient and socially unjust 

Chief Minister of Penang and DAP Secretary General Lim Guan Eng, who is now on a business networking trip in Korea, expresses grave concern over federal government’s decision to increase fuel prices. The fuel increase is both economically inefficient and socially unjust in that is does not deal with the basic problems of increasing productivity and energy conservation as well as ensuring that fuel subsidies fulfills its intended objectives of the poor instead of benefiting the rich.

Prime Minister Dato Seri Abdullah Badawi should ask the question whether this dramatic and drastic fuel increase would help to reduce the financial burden of the poor and also ensure that rich companies and individuals do not benefit equally with the poor. So long as rich companies continue to enjoy such fuel subsidies especially the independent power producers, the fuel increase will be seen as both pro-rich and punishing the poor.

---

* Lim Guan Eng, DAP Secretary-General & MP for Bagan & ADUN for Air Puteh