Petrol Woes Update: 78 sen more from midnight!

Breaking news from Malaysiakini.com!  (Update: and The Star!)

So it's gonna be RM 2.70 a litre. (Update: From midnight instead of from August! Still reeling from the shock...)

While it's not as distressful as the whopping RM4/litre, it will still manage a painful bite in our wallet each time we stop by a petrol station. 

RM 2.70 for a bowl of Penang Laksa. 40 bowls of them into the tank each time i pump. Haha. 

Now all that remains to be discussed is how much the annual RM 625 cash rebate means to you. RM 120 if you rides a bike.

If you drive a car below 2000cc. You are out of luck if yours is more than 2000cc.

Anyway the cash rebate is meant to compensate for the increment of price for 800 litres of fuel. 

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(Source: The Star)

78 sen more for fuel

Jun 4, 08 4:55pm

The fuel price will see an increase of 78 sen by August - a massive jump from RM1.92 per litre currently to RM2.70, Prime Minister Abdullah Ahmad Badawi is expected to announce today. The premier's press conference on the matter is expected to start at his office in Putrajaya as soon as Abdullah arrives. The exact date for the new price scheme is still unknown.  This is among government measures to cut the spiralling bill for petrol, diesel and gas subsidies, which is expected to amount to RM56 billion this year. To offset the fuel price increase, the government is to offer rebates to motorists. Under the scheme, vehicles below 2000cc will receive a RM625 rebate annually - to compensate for 800 litres of fuel used under the new price. Motorcyclists will be given a rebate of RM120. The money will be paid by postal order. It is learnt that the rebate will be paid when motorists renew the road-tax for their vehicles. The government is expected to save RM4 billion under this new subsidy restructure. If petrol is to be sold at full market prices, it could be as high as almost RM4 a litre - about 100 percent above current levels. However the government is slowly expected to head towards totally abolishing the fuel subsidy. [Full report to follow]

(Adapted from Malaysiakini.com)

Cash for motorcyclists, small-car owners

Jun 4, 08 2:04pm

Ahead of an official announcement on the proposed lifting of fuel subsidies by Prime Minister Ahmad Abdullah Badawi, several measures were leaked out after a morning briefing with mainstream media organisations. According to NST Online, which quoted a source from the cabinet committee on inflation which met yesterday, the government is likely to unveil the following measures: Direct cash payments to motorcyclists and small-car owners when the price of petrol goes up. The payments are expected to be made through postal orders. Tenaga Nasional to be allowed to increase electricity tariffs, with the exception of Sabah and Sarawak. No increase for LPG cooking gas and NGV for taxis. Gas subsidy to power industrial sector to be gradually reduced. Extra tax on independent power producers (IPPs) and palm oil millers. The decision of the cabinet, which met this morning, will be announced at 5pm at a press conference in Prime Minister’s Department. According to Domestic Trade and Consumer Minister Shahrir Samad, the government has set the goal of raising the pump price to market levels by August. Malaysia is moving to cut the spiraling bill for its extensive petrol, diesel and gas subsidies, which is expected to cost RM56 billion this year. Currently petrol sells for about RM1.92 a litre, among the cheapest in the region. If petrol is to be sold at full market prices, it could be as high as almost RM4 a litre - about 100 percent above current levels. [More to follow]

(Adapted from Malaysiakini)