Govt to review oil price subsidy: Najib
25 May, 2008
Pekan: The Government is to review the oil price subsidy as the rising price of crude oil in the world market has pushed the cost of subsidy way past the expenditure for development, Deputy Prime Minister Datuk Seri Najib Tun Razak said Saturday.
He said the matter would be discussed in depth at a meeting on Tuesday of the Cabinet Committee on Inflation. Najib will chair the meeting as Prime Minister Datuk Seri Abdullah Ahmad Badawi, who is chairman of the committee, is abroad.
“When the oil price rises too high, we have no choice but to review the subsidy because we have reached a stage where the annual subsidy for oil, gas and other essential items has exceeded the allocation for development,” he told reporters after attending a mass circumcision ceremony at Sekolah Kebangsaan Sri Maulana, here.
World crude oil price reached US$138 (RM444) on Friday.
Najib said the principle being worked on for the oil price subsidy was that the low-income group would enjoy a better facility than high-income earners and those who use more fuel.
He also said the new subsidy scheme would not be implemented at once but in stages, taking into account the financial capacity of the people. The Government would also ensure that the cost of other items, including food, was contained, he said. “If we can maintain the prices of food, the people will not feel the pinch too much,” he said.
Meanwhile, Najib said he hoped the Pilgrims Management and Fund Board would maintain the minimum fare for Haj flights despite the rising oil price.
“With the oil price continuing to rise, it is a challenge for Tabung Haji to maintain the minimum fare as it did last year,” he said at the presentation of national Tabung Haji exemplary awards, here.
However, it could not be helped if the fare had to be raised in view of the rising price of crude oil in the world market, he said. The price of crude oil hit US$138 (RM444) per barrel on Friday.
Tabung Haji Chairman Tan Sri Abi Musa Asa’ari Mohamed Nor was also present at the function where 50 pupils and students were honoured for outstanding achievement in public examinations.
Najib praised Tabung Haji for fulfilling its social responsibility of assisting outstanding students from poor families.-Bernama
[Source: Daily Express News, Sabah]
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What? The price of crude oil hit US$138 (RM444) per barrel??! It used to be about US$80 per barrel.. like 4 years ago?? Last night, hundreds of people hit the petrol kiosks around KK and Penampang. Waah! Tiba-tiba saja jammed tragik di Donggongon semalam, even when it’s way past peak hours! And, the prices of goods increased too. Petrol naik, beras naik, semua pun naik.
Huh, this is no play-play man. Even my working boyfriend considered to postpone buying a new car. I don’t feel the tragic-ness as of yet, but heck, I’m going to suffer to when I’m back to Shah Alam. OH NO!
