DON'T LEAVE HoME...!

Yes, that's DP's new *TAGLINE for the month of June, when the one-eyed open PM who set up a Special Committe to fight Inflation just a few months ago (and Desi asked WHY -- we are a model nation if for deacdes CPI is just at 2.0-3.0percent only what!:(, NOW HE LETS OUT THE BIGGEST INFLATIONARY/INCENDIARY BOMB!

* Wit' endless rounds of tehtariiiiiiiiak! APologies to the company that advises you to: DON'T LEAVE hOme WIT'OUT IT!

*********" SELAMAT DATANG TO THE CARING GOVERNMENT'S DOMAIN " ***********

From the Star Online:

Thursday June 5, 2008

Petrol price up by 78 sen - and will be reviewed monthly


PUTRAJAYA: The Government announced yesterday an increase in petrol and diesel prices, stating that it can no longer continue to subsidise fuel.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said the new prices were still at a 30-sen per litre discount from market prices.

In other words, if the market price is RM3 per litre, Malaysians will be charged RM2.70 at the pump. He said the price would be adjusted monthly based on the global oil price.


Half empty or half full?: Azhan Sharom showing the difference of how much petrol one can buy with RM1 Wednesday and today at a petrol station in Kuala Terengganu.

“Malaysians still pay lower than the market prices as far as petrol is concerned,” he told a packed press conference when announcing the restructuring of the subsidy package.

Abdullah said that although the restructuring would result in consumers having to pay more, prices were still lower compared with Singapore and Thailand.

He said the Government would save RM13.7bil through the restructuring.

From the savings, he said RM4bil would go to the National Food Supply Guarantee Policy, RM1.5bil for subsidising cooking oil and RM400mil to subsidise rice imports to make the price uniform in peninsular Malaysia, Sabah and Sarawak.

The Government would also spend RM200mil on flour subsidy, RM100mil on bread subsidy and RM7.5bil was meant for contributions to the subsidies for petrol, diesel and gas.


On top of that, Abdullah said, the Government would have to fork out RM5bil to pay to owners of cars and motorcycles eligible for rebates introduced under the restructuring of subsidy package.

“Our effort is certainly not an attempt to be popular but we try our best to help the people. We cannot satisfy everyone,” he said.

Abdullah said demand for public transport would go up with the rise in fuel prices and the Government was currently addressing the need to improve services.

He reiterated that the public should make changes to their lifestyle, saying they must ensure there was no wastage in resources such as water, energy and food.

He said if certain adjustments were made, the public would not be “too badly affected by price increases”.

He said the hike in fuel prices would cause a projected increase in inflation of around 4% to 5%. It would also have an impact on the country’s gross domestic product (GDP) growth but was confident that it could be maintained at 5% this year.

Abdullah said the Cabinet committee on anti-inflation had to come up with a system to ease the public’s burden from higher fuel prices.

“What is important is that we want to ensure the restructuring will encompass a mechanism that will protect and benefit those in the lower and middle income group.

“We are truly committed in ensuring these groups will not be burdened by the increase in petrol and food prices,” he said.

Asked if the subsidy restructuring would result in Malaysians going to the streets to demonstrate their unhappiness, Abdullah was confident the people would not resort to that.

The Changes
Price increase

Petrol – RM0.78/litre
Diesel – RM1/litre
Electricity:
Commercial and industrial – 26%
Retailers and small restaurant operators – 18% (for first 200kWh per month)
Residential – new pricing structure for users above 200kWh per month

Prices effective today (per litre)

Petrol – RM2.70 (previously RM1.92)
Diesel – RM2.58 (previously RM1.58)

Rebates

> RM625 per year
For private vehicle with engine capacity of 2000cc and below, including private pickup trucks and jeeps with engine capacity of 2500cc and below.

> RM150 per year
For each private motorcycle with engine capacity of 250cc and below

> RM200 reduction on road tax
For private petrol and diesel vehicles with engine capacity above 2000cc

> RM50 reduction on road tax
For private motorcycles with engine capacity above 250cc

Streamlined diesel subsidy
(for approved transportation companies, vessel owners and fishermen)

> Diesel – RM1.43 per litre (previously RM1 per litre for fishermen and RM1.20 per litre for vessel owners)

> RM200 per month for every owner and employee of Malaysian-owned vessels registered with the Fisheries Department

> 10sen per kilo incentive for every kilogram of fish caught by registered vessels

> 10sen per litre for every litre of diesel used by river transportation operators according to approved quota

Gas subsidies restructure
(for Peninsular Malaysia)

> For power producers – from RM6.40 per mmBtu to RM14.31 per mmBtu

> For industrial users (consuming less than 2mmscfd) – from RM9.40 per mmBtu to RM24.54 per mmBtu

> For industrial users (consuming above 2mmscfd) – from RM11.32 per mmBtu to RM32.56 per mmBtu

Electricity tariff restructure

> Households using 200kWh and below every month will not be affected. This covers 59% of households in Peninsular Malaysia with a monthly bill under RM43.60.

> Commercial and industrial users face 26% increase. Small retail and business outlets consuming under 200kWh per month face 18% increase.

Liquefied Petroleum Gas (LPG) and
Natural Gas for Vehicle (NGV)

> No change. Prices remain at RM1.75 per kg (LPG) and RM0.635 per litre (NGV)

Oil palm windfall tax

> For Peninsular Malaysia 15% for every tonne of CPO exceeding RM2,000

> Sabah and Sarawak 7.5% for every tonne of CPO exceeding RM2,000 > Abolition of cess tax

Service tax threshold for restaurants and eateries

> Service tax now for restaurants with annual sales of RM3mil (previously RM500,000)



Differing views on price policies
http://www.nst.com.my/Current_News/NST/Thursday/National/2258809/Article/index_html



By The New Straits Times


June 5, 2008


MALACCA: Chief Minister Datuk Seri Mohd Ali Rustam has described the fuel price increase and subsidy scheme as appropriate policy to ensure that the subsidy goes to the needy, reports Jason Gerald.

"Although those who do not deserve the subsidy would have to pay more, the poor will still receive a cash rebate

"This will ease the burden of those in the lower-income group."

He urged the people to change their lifestyle, stressing that the fuel price increase was inevitable, given rising global prices.

Mohd Ali suggested that Malaysians use public transport or carpool.

"Now is the time for Malaysians to rally around and help the government overcome the global oil crisis.

"We have to acknowledge the fact that the prices of petrol and diesel in Malaysia are still the lowest in the region."

In Kota Baru, a Pas government spokesman said they were supporting the price increase and subsidy scheme as the poor would still be assisted.

In Ipoh, Brenda Lim and Veena Babulal report that state Local Government and Public Transport Committee chairman Nga Kor Ming has described the subsidy scheme a failure.

"It has failed to address the crux of the issue, as a major portion of fuel subsidies is enjoyed by independent power producers."

He called on the government to reveal the contracts signed with IPPs.

Ipoh City Watch president Chan Kok Sun said money saved from reducing fuel subsidies should be used to improve the public transport system and subsidise transportation companies.

Chan said Malaysians would use public transport if the system was efficient and dependable.

On the proposal for higher power tariffs, he said Tenaga Nasional Bhd's monopoly in the peninsula should be abolished.

In George Town, Deputy Chief Minister II Dr P. Ramasamy criticised the cash-back system for motorcyclists and owners of small cars, Phuah Ken Lin and Adie Suri Zulkefli report.

He said the rich could abuse the system by buying smaller cars and using motorcycles.

He also questioned the rationale behind the imminent increase in electricity tariff.

Ramasamy said he was concerned that the power tariff increase would have a domino effect on prices of goods and services.

"I do not think that it is a wise move to raise the tariff now in view of rising food prices."

State Umno liaison committee deputy chairman Datuk Seri Abdul Rashid Abdullah said the people should accept the fact that the government had been subsidising fuel prices for a long time and could no longer do so.

"The government has listened to suggestions that those who can afford luxury or bigger vehicles must pay more at the pump."

On the electricity tariffs, Abdul Rashid said the government should not be made to absorb the escalating cost of producing electricity.

In Shah Alam, Neville Spykerman reports that Menteri Besar Tan Sri Khalid Ibrahim was concerned about the implementation of the subsidy scheme.

Khalid said although the cash-back system was good in theory, owners of small cars may not necessarily be driving them.

He, however, welcomed the move not to increase the price of LPG cooking gas or compressed natural gas.

In Kota Kinabalu, Consumer Association of Sabah and Labuan (CASH) president Datuk Patrick Sindu urged the people to make changes to their lifestyle.

Sindu, who is attending a food security conference in Rome, said rising prices of fuel, food and other items was a global problem and Malaysians could not be insulated forever, Jaswinder Kaur reports.

Sindu said the decision not to increase the price of cooking gas was probably to "pacify" the people.

Voluntary price watch group Rakan Pengguna Sabah (Sabah Consumer Friend) chairperson Datuk Amisah Yassin said she hoped traders would not raise prices of goods and services.

"We welcome any move taken by the government to assist the lower-income group but if traders take advantage of the situation, we are back to square one."

Amisah urged consumers and Rakan Pengguna members to write to the Domestic Trade and Consumer Affairs Ministry to complain about traders who charged unreasonable rates for goods and services.

DESIDERATA: As is wont of politicians and some newshounds, the ADVICE/TAGLINE above does not apply to the owner:( Do as I tellllll you,so many times! -- not what you see I do, I do. Ido!:(:(

I'm now leaving my hOme without thy permit or permission, you think I care? To Koala Lumpuh hear I cometh, to cari makan-makan dan jalan-jalan; hopefoolly the journey back this evening won't take another 4 DAMNED HOURS OF MY PRECIOUS, PRECOCIOUS dan PENDEK TiME! Se ya, bye me lunch at Jalan Pudu where you collect your winnings -- Magnum Plaza?

UPDATEd @9.23PM: I picked this one up from REUTERS:)

UPDATE 3-Malaysia revamps energy price system, risks backlash

Wed Jun 4, 2008 7:58pm IST

By Soo Ai Peng

PUTRAJAYA, Malaysia, June 4 (Reuters) - Malaysia announced on Wednesday a broad overhaul of its energy price system, sharply raising fuel and gas prices but taxing palm oil and power producers in a move that would drive inflation to a 10-year high.

The reforms would save the government 13.7 billion ringgit ($4.23 billion) but risk further stoking public anger against Prime Minister Abdullah Ahmad Badawi, already fighting for his political survival.

Petrol prices would rise 41 percent to 2.70 ringgit a litre and diesel 63 percent to 2.58 ringgit from Thursday, Abdullah said, in a reform that would eventually lift Asia's second-cheapest pump prices to market rates.

Power distributor Tenaga Nasional's (TENA.KL: Quote, Profile, Research) tariffs would go up by as much 26 percent while the price of gas supplied by state oil firm Petronas [PETR.UL] to the power sector would be more than doubled, he said.

"We try our best," Abdullah told reporters in the country's administrative capital near Kuala Lumpur.

"This is not an attempt to be popular, we cannot satisfy everybody, naturally people will not be happy."

The government has said it plans to start using global market rates for fuel in August to prevent subsidies from eating up a third of its budget.

Malaysia would save 4 billion ringgit on fuel subsidies and twice as much by raising the price of natural gas, Abdullah said.

That would lift inflation this year to between 4 percent and 5 percent, he added, making it the highest rate since 5.3 percent in 1998. Inflation last year was 2 percent.

"Malaysia started with one of the lowest inflation rates in the region, so maybe they can be a bit more patient, but I think by the end of the year, they'll probably have to raise interest rates," said economist David Cohen of Action Economics.

Annual inflation hit a 15-month high of 3.0 percent in April. Malaysia's key policy rate is one of the region's lowest.

Malaysia follows other countries such as Indonesia and India in lifting fuel prices, in a nod to the growing strain of record oil prices on state finances.

SUPPORT

The government would also impose a windfall tax on independent power producers and palm oil millers, which could affect plantation firms such as Sime Darby (SIME.KL: Quote, Profile, Research) and IOI Corp (IOIB.KL: Quote, Profile, Research).

To cushion the blow on a population accustomed to pump prices less than half those in neighbouring Singapore and significantly lower than in the United States, the government is planning cash handouts for motorcyclists and small car owners, Abdullah said.

Still, Tricia Yeoh, director of the Center for Public Policy Studies in Kuala Lumpur, said the increase in fuel prices could spark dissatisfaction among Malaysians.

"We may see protests similar to the ones that took place in March 2006, when petrol prices were last raised.

"The masses obviously would not be happy with this despite the fact that the government needed to do this," she said. "People do not see this being matched by a plan that will help them meet the growing cost of living."

Oil's rise to records above $130 a barrel has forced governments from Jakarta to New Delhi to risk public discontent and consider reforms to subsidies that are draining their coffers.

India raised fuel prices by 10 percent on Wednesday in the biggest increase this decade.

In Asia only Myanmar has slightly lower pump prices than Malaysia, although sales in Myanmar are rationed to two gallons per car a day.

Domestic Trade Minister Shahrir Samad said on Wednesday all fuel price controls would be scrapped by August. Based on the latest floating market prices in Singapore, the Asian oil trading hub, Malaysian prices would have to rise 69 percent to 86 U.S. cents a litre of petrol and 157 percent to $1.08 for diesel.

Malaysia is a net oil exporter and earns 250 million ringgit a year in revenue for every $1 rise in crude prices.

Shahrir had earlier said the fuel subsidy would cost the government as much as 56 billion ringgit this year based on current crude oil prices, or about a third of government expenditure in 2008.


DESIDERATA: I will come back to make comments -- InsyaAllah if my spirit and body are willing to work in unison! -- but meanwhile, chew on this and do some calculations whether Malaysians have been taken for another ride because the TRUTH lies in the Petronas true accounts!

"***
Malaysia is a net oil exporter and earns 250 million ringgit a year in revenue for every $1 rise in crude prices.
****"