SHAH ALAM Sept 4th: The government should explain to the people why the price of RON97 petrol is much cheaper compared to RON 95, said the Federation of Malaysian Consumers Associations (FOMCA).
According to FOMCA's Communications Director, Mohd Yusof Abdul Rahman, people are confused by the situation because the price of RON95 should be much cheaper if the government is serious about helping the low-income groups in the fuel subsidy.
"It shows that the government is not transparent in their subsidy restructuring," said Mohd Yusof, when contacted by TV Selangor.
Previously, the price of RON95, after a RM0.20 sen bump to RM2.10 per litre plus a subsidy of RM0.63 per litre, was RM2.73 per litre. RON97, priced at RM2.70 per litre, was of higher quality but cheaper by RM0.03 per litre in comparison which would have saved the government more money at RM0.03 per litre of subsidised oil.
Mohd Yusof believes BN government's action of increasing the price of RM0.20 sen will dramatically trigger a chain reaction of increased prices of goods and services that are high enough to affect the cost of living.
He said the government could have done things in stages at a particular time so as to ensure that the impact would not have been too great to affect people's lives.
He also added that the government's proposal to reintroduce the use of RON92 is regressive as RON92 is known to have a negative impact on the environment.
"The government should maintain RON95 by taking steps that will not not burden the people as the fuel is largely used for transportation by the lower income group," said beliau.
-MZA
