Prime Minister Abdullah Ahmad Badawi believed the people will understand the increase in fuel prices announced today and expressed hope that they will not take their anger to the streets.

abdullah ahmad badawi govt announce new petrol price increase 040608 07Abdullah, whose ruling coalition suffered a severe setback in the last general election in March, said the price hikes may put his popularity at stake but added that he was doing it in the best interest of the people.

"We try our best. This isn't an attempt to be popular. (But) we have to think in the best interest of the people," he told reporters during a 50-minute press conference held at his office in Putrajaya this afternoon.

"We can't satisfy everyone. Anything that involves people paying more, naturally they are going to be unhappy. (I hope) they will understand the circumstances we are working under," he added.

The premier has announced that petrol prices will jump 40 percent from midnight as the government moved to cut the spiralling cost of subsidies.

Following today's hefty price hikes, he expressed hope that the people will not stage street demonstrations.

"Insyallah (God willing), I hope they will not demonstrate over this," he said.

There were a series of demonstrations during the previous round of hike in 2006, some of which were violently dispersed by the police, including one which is infamously dubbed as the ‘Bloody Sunday'.

‘We are still helping'

The new pump price for petrol will be RM2.70 and RM2.58 for diesel, an increase of 41 percent and 63 percent respectively.

Taking questions from journalists, Abdullah stressed that government was still helping the people.

"Subsidies are still given, it is not something that has been done away with," he said.

Abdullah has said that the government will maintain a 30-sen fuel subsidy, which is independent of the market rate of fuel prices. The government will review the market price on a monthly basis and announce the subsidised price accordingly.

The premier also called on the people to change their lifestyle and be prudent following today's hike.

He stressed that the price of controlled items will remain despite the increase and appealed for people's cooperation to report to the authorities on traders who hike the prices of these items unlawfully.

abdullah ahmad badawi govt announce new petrol price increase 040608 06Meanwhile, Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad said the ban on the sale of petrol to foreign vehicles at the borders will no longer be necessary following the latest move.

The government was to enforce the ban from June 9 on Singapore-registered cars. Ban of sales of petrol to Thai cars was already in force since Monday and this will now be revoked.


Watch 6-min video of PM's press conference


petrol price hike new price 040608