Fuel subsidies removed effective Dec 1

PETALING JAYA: The subsidies for RON95 petrol and diesel will be stopped effective Dec 1, with retail prices fixed to a managed floating pricing mechanism, which is also used for RON97 price since 2010.
Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek, in a statement today, said fuel prices will be set at the end of each month based on a monthly average price.
He said this means the rise and drop of RON95 prices will follow the global crude oil prices.
"The government will monitor market prices of fuel from Nov 20 to 31 and the actual amount will be used to set the price for December.
"If this trend continues, the retail price for RON95 for December is expected to be reasonably reduced based on the Automatic Price Mechanism," Hasan said.
In an immediate reaction, PKR vice-president and secretary-general Rafizi Ramli hit out at the move, saying it would burden the people even more.
"The question is not whether the subsidy is good or bad, but how the income derived from petroleum is spent," he said in a statement today.
Rafizi, who is Pandan MP, said he disagreed with the move and will be joining other activists and the people in a demonstration on Dec 31 to get the government to bring down fuel prices as the world crude oil price has fallen dramatically.