Petrol price hike not to burden people, says minister

KUALA LUMPUR: The increase in the prices of RON95 petrol and diesel is not to burden the people but rather to strengthen the financial status of the country, said Domestic Trade, Co-operatives and Consumerism Minister Datuk Seri Hasan Malek.
He said the people should understand that the government had studied (the need for a) hike carefully before implementing it at earlier on 12 midnight today.
"The hike is also meant to act as a deterrent against illegal petrol and diesel smuggling activities by some unscrupulous people," he said at a press conference after attending the Malaysian Intellectual Property Award today.
He said the aim of the price increase is to prevent certain quarters from taking advantage of the petrol and diesel subsidies, which, if continued, would affect the economy.
"The government is slowly trying to reduce the subsidies to ensure its finances remain strong and the goal of zero deficit can be reached by 2020," he added.
Hasan pointed out that before implementing any major plan or policy, the government takes into consideration the welfare of the people.
"So I hope the public will not be easily influenced by any quarters who try to take advantage of the situation to politicise the issue," he added.
He also said the ministry's enforcement team will go on the ground to ensure businessmen do not capitalise on the petrol and diesel price to hike the prices of goods.
"Do not try to challenge or fool around with the enforcement team because we will not hesitate to take stern action regardless of whether it is local or a foreigner."
Effective today, the prices of RON95 and diesel went up by 20 sen per litre, making the new price for RON95 to be at RM2.30 a litre while that of diesel RM2.20.
Meanwhile, former prime minister Tun Dr Mahathir Mohmad said the hike was apt to avoid financial leakage and misappropriation of the subsidised fuel, reports Bernama.
He said if the subsidies were not reduced, the fuel supply would continue to be manipulated by certain quarters to reap profits, especially through cross-border smuggling of the fuel to neighbouring countries.
"Oil is cheap here (Malaysia). Even in oil-producing countries like the Arab countries, the price is higher there than here. How could we sell oil cheaply? That's why there are people stealing our oil every day."