Datuk Henry Sum Agong
KUALA LUMPUR: The setting of petrol and diesel retail prices on a weekly basis has had an immediate and just impact on consumers and industries, the Dewan Negara heard today.
Domestic Trade, Cooperatives and Consumerism Deputy Minister, Datuk Henry Sum Agong said since the implementation of the mechanism in March, with the price announcement made every Wednesday, the increase in the retail price of RON95 petrol had been lower at RM0.05.
The price of RON95 had increased 20 times with the overall increase by RM0.82, while the drop in price occurred 15 times with the overall amount at RM0.87.
“The weekly price determination involves price change within a shorter period of seven days and the retail price set is closer to the cost of the petroleum.”
Henry said this in reply to a question from Senator Datuk Megat Zulkarnain Omardin on the effectiveness of the weekly price determination mechanism for consumers while the price comparisons showed more increases than decreases.
He said the proposal to give subsidy for petrol and diesel prices should be carefully studied with regard to its implications to ensure that the assistance given by the government would really benefit the needy.
“Malaysians use almost two billion litres of petrol and diesel per month. If a subsidy of 50 sen is given for each litre, the government will have to bear the cost at RM1 billion per month or RM12 billion per year.
“However, it must be remembered that the amount of usage of fuel is different for everyone. For instance, those driving a big car use more petrol like 30 litres per filling with a subsidy of RM15, while a motorcyclist may use 30 litres for a whole month,” he said. – Bernama