My Anthem

Thursday, June 05, 2008

Petrol pump price rises 40%...

Is Pak Lah attempting to commit "Hara Kiri" after a large section of the electorate gave him a "whipping" at the March 8 polls?

"Hari Kiri" is taking one's life, attributed to the citizens of Japan originally but being now emualted slowly by other nations showing some signs of nobility of Self. I deem Hara Kiri as an act not quite as despicable as "Suicide" in Asian societies; hence my description as "noble", but I am sure many among my readers would beg to disagree. Never mind -- One man's meat is another man's poson.

From 5.00pm, news via SMS had reached Desi's ears from two sources that the petrolpump price would rise substantially from Thursday June 5, 2008. As usual, I was expecting some"kiasu" Malaysians to queue up to save the "last tenner" for a finaltop-up. "Some" was a misjudgment, like many of us misjudged the peron of our Prime Minister who was generally termed "Mr Nice Guy" when he swept into truly elected office as PM in March 2005 General Elections.

I wrote a frined aftr I came back to Seremban from Kuala Lumpur using the old road via Cheras/Kajang/Mantin. The journey normally taking ONE hour plus a little took a dragging, hot and cursing FOUR hours.

"... I took the Cheras old road back to Seremban, starting at 6.15pm and only arrived 4 hours late because of 2-km long "jams" in the neighbourhood of ALL ptetrol stations once word spread from 5pm that the Govt wuld raise pump price from RM1.92 to RM2.70 per litre. Madness. I believe tomorrow many stations would report SUPPLIES WOULD BE NIL. I wonder if Pak Lah is trying to committing "hara kiri"!"



Four years later, the GRIM REALITY struck many Malaysians in more ways than one.

He ain't that nice anymore. His niceties did not extend beyong greetings and words of commitment well pronounced by hardly delivered on key promises to the Rakyat.

This is the latest bomb he pounded us ordinary folks with, after his deputy asked us to "tighten your belt" more than a year ago, and re-echoed by the Prime Minister himself just recently that the people have to adjust their life-style andlive within their means.
From The Star Online:

Wednesday June 4, 2008 MYT 9:49:43 PM


Petrol to cost RM2.70 from midnight (updated)



Drivers' reactions on petrol price hike


KUALA LUMPUR: Prime Minister Datuk Seri Abdullah Ahmad Badawi on Wednesday announced price hikes for petrol, diesel and electricity.

He said the new price for petrol is RM2.70 a litre, effective midnight tonight. The price goes up by 78sen from the current RM1.92, a hike of 40%.

Abdullah also announced that the price of diesel would be increased by RM1 from RM1.58 to RM2.58.

He also said that Tenaga Nasional Bhd would be raising electricity rates by 18% for homes and 26% for business users.

The announcements are part of the new fuel subsidy plan.

Abdullah also announced a RM625 annual cash rebate per vehicle, for owners of private vehicles with engine capacities of up to 2,000cc, as well as pickup trucks and jeeps with engine capacities of up to 2,500cc.

Owners of private motorcycles with engine capacities of up to 250cc will receive RM150.

Payment will be made via Money Order upon renewal of road tax, from July 1.

For owners of private vehicles with engine capacities exceeding 2000cc, road tax will be reduced by RM200.

Owners of private motorcycles with engine capacities above 250 cc will get RM50 reduction in road tax.

DESIDERATA:
I posted this iitial report at about 1AM, tired and cursing; I will return after sound sleep (if I can!) to lend more thought, maybe some consideration to the numero uno trying HK, if you cae to listen.The "you" includes Datuk Seri Abdullah Ahmad Badawi.

DESIDERATA:
AN UPDATE from a newbie Online newspaper carying a report date June 5, 2008 which is on a "similar" vein/vain as Desi's:)

Many may spurn Pak Lah's tough sell

http://malaysianinsider.com/mni/many-may-spurn-pak-lah-s-tough-sell.html

By The Malaysian Insider

June 5, 2008


KUALA LUMPUR, June 5 — Midway through yesterday’s press conference, just after Datuk Seri Abdullah Ahmad Badawi had fleshed out the new subsidy regime for Malaysia, a journalist walked out of the room and uttered two words: political suicide.

His words are being repeated today in many places across the country. Many Malaysians cannot fathom why a prime minister who enjoys an approval rating of around 50 per cent (higher among Malays) and who is fighting for survival in Umno has increased the pump price for petrol by 78 sen per litre and RM1 per litre for diesel. Worse yet, economists warn that inflation could hit 6 per cent.

The last time the government increased the pump price by 30 cents in February 2006, the PM’s approval rating dropped 15 per cent.

So why is Abdullah committing political suicide? Probably because politics did not figure very much in Cabinet discussions on inflation and the way the subsidy scheme was structured. Those familiar with the discussions on Tuesday and during the four-hour Cabinet meeting yesterday said that there was unanimity among ministers that the time had come to pull the plug on the subsidy scheme which was benefiting everyone, regardless of their income levels.

The consensus was that the government could not sustain the subsidy bill which was in excess of RM50 billion. If nothing was done, it would drain funds needed for development projects and the mid-term review of the Ninth Malaysian Plan. The government also felt that it was time for Malaysia to have a more efficient economy, where businesses no longer relied on cheap fuel or electricity to be competitive.

Most of the RM13.7 billion which the government will save will be ploughed back as rebates and channelled to fund the food security policy.

Pushing the line the hardest were the economic ministers – Second Finance Minister Tan Sri Nor Mohamed Yakcop; Economic Planning Unit Minister Datuk Amirsham Aziz, Minister of International Trade and Industry Tan Sri Muhyiddin Yassin, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad.

There were several options on the table. One called for the government to allow motorists to pay market rates at the pump. This was shot down because the ministers felt that the Malaysian economy would not be able to absorb such a shock to the system.

Another option called for smaller and more manageable increases in petrol prices, say 20 sen every few months. But the ministers felt that it made more sense in facing the wrath of Malaysians once rather than every few months. Finally, the Cabinet agreed that from today, petrol be sold at RM2.70 per litre and diesel at RM2.58 per litre. To ease the burden of those in the lower income group, owner of cars below 2,000cc will enjoy a cash payout of RM625.

Ibrahim Suffian of the Merdeka Center, a research and polling house, said that a straw poll just after the announcement showed that even government supporters were upset with the increase. Most of them are junior civil servants and they argued that the RM625 rebate would only help cushion the increase petrol price for three to four months.

Still, Ibrahim believed that the government had opted for the right strategy by announcing the increase at one go rather than incrementally. "You only face the anger once," he said, noting that Abdullah faced stinging attacks when his government increased the pump price by 20 sen in 2005 and 30 sen several months later.

On the flip side, Abdullah did not have to contend with a strong Opposition. Pakatan Rakyat are already organising protests and Datuk Seri Anwar Ibrahim tapped the popular vein when he questioned why the government was imposing such a severe burden on the public when Petronas was making record profits.

The view from the man in the street is that Malaysians should continue enjoying low fuel prices as long as the national oil company is flush with cash.

"The only person who knows about Petronas financial position is the PM. People are being denied information and can’t feel any benefit from the national treasury," said Anwar.

The Edge Financial Daily in an editorial noted that public disaffection at the rising cost of living will need to be managed. Evidence of profligate spending on unnecessary projects will only increase the resentment on the ground against the country’s leadership.

"Indeed the astute political leader would seize this opportunity to correct mistakes of the past by reviewing prestige projects of questionable utility. Now is the time to embrace a new pragmatism in the economic management of the country...A failure to grasp the nettle at this juncture may cost a heavy political price," it said.

Abdullah’s supporters noted that before the general elections the PM spoke repeatedly about overhauling the subsidy system in the country. But they thought that he would put it on the backburner after four states fell to the Opposition and the Barisan Nasional lost its two-third majority in Parliament.

A government official told the Malaysian Insider: "He has done what he thinks is responsible and believes that the public will accept the reasons. Maybe his faith is touchingly misplaced."

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