Malaysia raises fuel prices 40% !!

40 % !!!

Petrol and diesel prices will go up by 78 sen and RM1 per litre respectively at midnight tonight.

But, did I hear "Malaysia has postponed any fuel price hike until September", who said this ? listen here.

The government has no plans to increase fuel price despite the price hike of petrol by 30 per cent in Indonesia.

"For the time being, we are not considering increasing the price of petrol and diesel although we are aware of the impact of the crude oil price hike in the world market.

"We will see how the subsidy system is being managed to encourage saving and ensure that there will be no detrimental effects (to the country),"

Video taken from Malaysiakini's Videos


Today, June the 4th, The government has announced that petrol price will go up by 78 sen at midnight - a 40.6 percent jump from RM1.92 per litre to RM2.70.

Datuk Seri Abdullah Ahmad Badawi announced at his office the Cabinet had agreed on a cash rebate for Malaysian owners of private cars and motorcycles to ease the burden of the rise in the fuel prices.

"A cash rebate of RM625 per year will be given to owners of private cars of engine capacity of up to 2,000 cc and pick-up trucks and jeeps of up to 2,500 cc.

"Owners of private motorcycles of engine capacity of up to 250 cc will be paid a cash rebate of RM150 per year," he said.

The prime minister said the cash rebate would be given to the owners of the cars and motorcycles when they paid or renewed their road tax.

The increase in prices announced Wednesday is the highest ever. On Feb 28 2006, the prices of petrol and diesel went up by 30 sen, with petrol costing RM1.92 per litre and diesel RM1.58 per litre.


Wong Chun Wai:"Up, up and up" :

It will be difficult for Malaysians who have been used to subsidies. Their livestyles must now change unless they want to pay more. Petrol has increased by 78 sens to RM2.70 per litre from RM1.92 while the new diesel price went up by RM1 to RM2.50 per litre.

That's not all. Tenaga Nasional will raise electricity rates by 18% for homes and 26% for business users. We can expect the higher cost of production to be passed on to consumers. That means you can expect our "economy rice" to be more pricey. For salary workers, without any increase in wages, their spending power has immediately shrunk.

For the Malaysian middle class, who form the majority of the one million taxpayers, it is a big burn in their pockets. But there is some good news. Owners of cars of 2 litre capacity engines and below, will get cash rebate of RM625 a year and their road tax will be cut by RM200. More details are expected to be issued over the next 48 hours but as of now, the petrol stations are packed.