PKR vice-president Rafizi Ramli has urged the government to review fuel prices on a weekly basis, instead of doing it monthly as implemented from December 2014.

He said so because the global oil price has been dropping daily and eventually the people would have to pay extra from the market price.

“The global oil price keeps on falling and is expected to remain so throughout 2015.

“The current method of reviewing and setting the price of RON95 and diesel according to the market price monthly would only victimise the people,” Rafizi said in a statement today.

He said Putrajaya, however, would be making extra money through hidden fuel taxes during the monthly timespan.

This is because the current monthly review system takes the average fuel price for the month before, which would victimise the people because they would end up paying more than the current fuel price, added the Pandan MP.

“When the price paid by the people is higher than the market price, every extra sen would be collected by the government as taxes.

“If this situation does not change and continues, I expect the government to collect between RM3 billion to RM5 billion in 2015 for petrol and diesel purchases,” Rafizi (left) added, stating that the government had collected RM633 million in hidden fuel taxes during December alone.

Rafizi also said it was “disappointing that the government would manipulate the fuel pricing methods to tax the people” with the increasing cost of living and fuel subsidies being removed.

The government announced on Dec 31 that the price of RON95 fuel is being reduced from RM2.26 to RM1.91 per litre, while the price of diesel drops to RM1.93 per litre and RON97 falls to RM2.11 per litre now.

More petrol stations to close

Meanwhile, the Petrol Dealers Association of Malaysia (PDAM) said more petrol stations would be forced to close with the new fuel prices coming into effect from Jan 1.

According to PDAM president Hashim Othman, this is due to the high losses incurred by the dealers from the fuel price drop.

“If the drop was only a few sen, we could absorb the losses. But now with 35 sen drop (for petrol), we are buying it high and selling it low.

“If this continues, many of us will have to close down,” he was quoted as saying by The Star.

The newspaper reported that Domestic Trade, Cooperatives and Consumerism Minister Hasan Malek had also confirmed that dealers were facing high losses.

When was asked what the government would be doing to handle the problem, he said they would be looking into it.

“For the time being we are seeing what is happening, but we are meeting with the oil companies and the dealers (about this),” Hassan replied.