Petrol prices could rise initial 15 sen per litre
May 27, 2010
KUALA LUMPUR, May 27 — The government could hike petrol prices by an initial 15 sen per litre from their current price at some stage this year under plans presented by a body advising the government on how to cut subsidies.
The benchmark RON 95 grade currently costs RM1.80 per litre.
The proposals were made in a public presentation today to win over voters to accepting higher prices as the government seeks to reduce the country’s budget deficit which stood at a 20-year high of 7 per cent of gross domestic product in 2009.
Under the proposals presented by the advisory body, the price of petrol would be hiked some time this year followed by two price hikes totalling 20 sen per litre in 2011 and two more of 20 sen per litre in 2012.
In 2013-2015, the price hikes would slow and by the end of 2015, the price of RON95 would stand at RM2.60 per litre, according to the plans that have yet to be approved by the government.
The forecasts were based on a crude oil price forecast of US$73.06 (RM233.80) per barrel for 2011 and $79.41-$94.52 for 2013-2015. — Reuters
------------------------------------------------------------------------------------
Malaysian government mulls phased subsidy cuts
Reuters - Tuesday, May 25
KUALA LUMPUR, May 24 - Malaysia's government is to discuss plans to cut its subsidy bill at a cabinet meeting on Wednesday, with cuts likely to be phased in over a period of five years, three government officials told Reuters.
The aim is to reduce Malaysia's bill from food, petrol, electricity and gas subsidies that official figures show had cost 24.5 billion Malaysian ringgit in 2009, or 15.3 percent of total federal government spending.
The government thinktank charged with designing the subsidy cuts has put the total cost of subsidies at 74 billion ringgit annually, although that includes social welfare, health and education transfers, according to adverts placed in newspapers.
The proposals presented by the thinktank had envisaged subsidy cuts starting in June, with price rises coming every six months over a five year timeframe, the sources said.
"The feeling here is that the June 1 timeframe may be too soon. It has to be done moderately and in stages," said a government source who has seen the proposals.
The sources declined to be identified because of the sensitivity of the issue.
The effect of price rises is likely to be offset by support payments for poorer people, the sources said.
"One issue of concern is whether to cut all in one go, or sector by sector, and the timeline," said a second government official. (Reporting by Niluksi Koswanage and Razak Ahmad; Writing by David Chance; Editing by Neil Fullick)
No comments:
Post a Comment