Proposal for fuel prices adjusted twice monthly
Published: Aug 11, 2008 8:13 AM | Updated: Aug 11, 2008 10:30 AM
Gerakan's acting president Dr Koh Tsu Koon today proposed that the adjustment of fuel prices in the country be done fortnightly instead of a monthly review.
Gerakan's acting president Dr Koh Tsu Koon today proposed that the adjustment of fuel prices in the country be done fortnightly instead of a monthly review.
Koh, in a statement, said the government should readjust fuel prices on the first and fifteen of every month.
"A bi-monthly adjustment scheme should be adopted as the world fuel price fluctuates rather quickly and substantially," Koh said.
A more frequent adjustment, he added, will enable the benefits of price reduction to be transmitted to and benefit all consumers.
"For example, the current crude oil price has gone down to US$115 (RM383.20) per barrel which is the lowest in the last three months.
"It is almost US$25 below the peak of US$139 per barrel on June 8, 2008. This is also US$10 below the world price of US$125 when the government announced the increase in fuel price on June 5, 2008," said the former Penang chief minister.
Koh added that although some mitigating measures were introduced by the government to cushion the impact of high fuel prices, the public has been increasingly burdened in the last two months.
Therefore, he argued, it is only fair that since world fuel prices are beginning to fall substantially, the government should pass the benefits to the people as quickly and as effectively as possible.
However, he warned that despite the price fluctuations, the government should keep its promise and ensure that petrol prices are no higher than RM2.70 per litre for the rest of the year.
The government had announced on Aug 2 that fuel prices would be reviewed once a month beginning Sept 1, based on the average global market price and after taking into consideration the fixed subsidy of RM0.30 per litre.
During the announcement, Prime Minister Abdullah Ahmad Badawi promised that petrol prices this year would not exceed RM2.70 per litre.
Koh, in a statement, said the government should readjust fuel prices on the first and fifteen of every month."A bi-monthly adjustment scheme should be adopted as the world fuel price fluctuates rather quickly and substantially," Koh said.
A more frequent adjustment, he added, will enable the benefits of price reduction to be transmitted to and benefit all consumers.
"For example, the current crude oil price has gone down to US$115 (RM383.20) per barrel which is the lowest in the last three months.
"It is almost US$25 below the peak of US$139 per barrel on June 8, 2008. This is also US$10 below the world price of US$125 when the government announced the increase in fuel price on June 5, 2008," said the former Penang chief minister.
Koh added that although some mitigating measures were introduced by the government to cushion the impact of high fuel prices, the public has been increasingly burdened in the last two months.Therefore, he argued, it is only fair that since world fuel prices are beginning to fall substantially, the government should pass the benefits to the people as quickly and as effectively as possible.
However, he warned that despite the price fluctuations, the government should keep its promise and ensure that petrol prices are no higher than RM2.70 per litre for the rest of the year.
The government had announced on Aug 2 that fuel prices would be reviewed once a month beginning Sept 1, based on the average global market price and after taking into consideration the fixed subsidy of RM0.30 per litre.
During the announcement, Prime Minister Abdullah Ahmad Badawi promised that petrol prices this year would not exceed RM2.70 per litre.
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