Putrajaya, explain why oil prices not reduced

There is no justification for Putrajaya not to reduce oil prices now when gobal demand has dropped.

PETALING JAYA: Perak DAP Economic Development Bureau chief Chong Zhemin has criticised Putrajaya’s failure to reduce oil prices when the price of the commodity is plummeting in the global market.

Chong was commenting on Deputy Finance Minister Ahmad Maslan’s statement that the oil price would not be reduced because the government was still subsidising RON95 and diesel.

“There is no justification when the government increases the petrol price in tandem with a global hike but refuses to lower it when there is a drop,” he said in a press statement today.

“Why is Ahmad Maslan now taking a different stand on petrol prices when global oil price is plummeting?” he asked.

Chong also lamented that it was shocking and irresponsible that the government was considering implementing fuel tax should the global oil prices continued to plummet.

“With a poor public transport system coupled with one of the highest vehicle to population ratio in the world, fuel tax if implemented would be regressive and hit the poor the hardest,” he said.

Citing a study done by Universiti Malaya and Khazanah Research Institute, Chong said income inequality was on the rise in the nation and fuel tax would make the rich, richer and the poor, poorer.

“Instead of further worsening the situation, Putrajaya must come out with plans to address Malaysia’s inequality of income,” he added.