PKR’s youth wing has slammed the government for withdrawing fuel subsidies as irresponsible, in view of the upcoming implementation of goods and services tax (GST).
 
The group’s chief Nik Nazmi Nik Ahmad said the people should question the government’s priorities in announcing the withdrawal.
 
“While many issues involving large expenditure (such as 1Malaysia Development Berhad’s debts) are not properly explained, victimising the people shows how weak its priorities and commitment are in protecting the people,” he said in a statement today.
 
He pointed out that the government’s 2014 budget was RM264 billion, not including supplementary budgets, and the proposed 2015 budget is RM274 billion.
 
Yesterday, Domestic Trade, Cooperative and Consumerism Minister Hasan Malek (left) had announced that prices of RON95 petrol and diesel will no longer be subsidised beginning Dec 1, but instead be placed on a managed float like RON97.
 
The move came after falling global oil prices dipped RON95 market prices to RM2.27 per litre, which is below the government-controlled retail price of RM2.30.
 
“If this trend continues (falling global oil price), it is expected the retail price of RON95 in December will be reduced accordingly based on the Automatic Price Mechanism (APM) formula,” he said.
 
Opposition politicians had previously threatened the government with mass protests if fuel prices were not reduced, saying that maintaining current prices despite falling oil prices, would be tantamount to be ‘fuel tax’ rather than a subsidy.
 
Nik Nazmi, who is also a Selangor exco member, urged the government to reveal the mechanism used to determine fuel prices, and to reveal how it has spent the money paid to the government by state oil company Petronas since it was founded in 1974.
 
“PKR Youth notes that although the subsidy rationalisation has been going on for years, the government expenditure has never gone down,” he said.