[sustran] fwd: Malaysian Govt studies slight increase in prices of petro-products

SUSTRAN Resource Centre sustran at po.jaring.my
Thu Jul 27 11:04:39 JST 2000


I forward this from the Star newspaper mainly for the insight into the
large subsidy on fuel here in Malaysia.
---------------------------

Thursday, July 27, 2000
Govt studies slight increase in prices of petro-products

By Mergawati Zulfakar 
KUALA LUMPUR: A slight increase in the prices of petroleum products is
expected following a government decision to conduct a review. 

However, the quantum of increase and when it will take effect has yet to be
decided. 

Government sources said the increase would be "very minimal'' and would not
burden consumers greatly. 

The last increase in petrol prices was in the early 1980s. Crude oil is now
priced at more than US$30 a barrel. 

"There have been discussions in the Cabinet in the last few weeks. Petrol
prices in Malaysia are still the cheapest compared to other countries. 

"The Government has been giving a lot of subsidies which run into hundreds
of millions of ringgit every year,'' said one government source. 

It is understood that the Government will spend more than RM1bil in petrol
subsidies this year. 

The sources also said that because of the cheap petrol prices, rampant
smuggling has been reported. 

Asked when the price would take effect, the source said: 

"I don't know. Discussions have been done in the past few weeks. Further
studies will have to be made carried out.'' 

Another source said that the Treasury had been directed to conduct studies
on the quantum of increase and the implications of any increase in petrol
prices. 

In Kuala Lumpur, unleaded petrol is priced at 110 sen per litre. In Kota
Kinabalu it is 108 sen and Kuching 109 sen. 

Leaded petrol is priced 106 sen per litre nationwide while prices of diesel
is 65.1 sen per litre in Kuala Lumpur, 65.4 sen in Kota Kinabalu and 64.8
sen in Kuching. 

In Bangkok, unleaded fuel is 15.80 baht (RM1.60) per litre while in
Singapore, it is S$1.33 sen per litre (RM2.88). 

In Jakarta, unleaded petrol is sold at 1,000 rupiah per litre (46 sen). 

© 1995-2000 Star Publications (Malaysia) Bhd (Co No 10894-D)
Managed by I.STAR Sdn Bhd (Co No 422871-T). 

Distributed for the purpose of education and research.

A. Rahman Paul BARTER
SUSTRAN Resource Centre
Information services for the Sustainable Transport Action Network
for Asia and the Pacific (the SUSTRAN Network)
sustran at po.jaring.my,  http://www.malaysiakini.com/sustran



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