Kota Kinabalu: The increase in petrol and diesel prices should galvanise leaders of oil-producing states in Malaysia including Sabah to push for a review of the oil royalty rate as well as for differentiation of prices and benefits for these states with non-oil producing states.
Parti Keadilan Rakyat (PKR) Vice-President Datuk Dr Jeffrey Kitingan who made the call in a statement, Thursday, also asked for a review of the oil-sharing agreement between Petronas and the oil-producing states in Malaysia.
On the hike, Jeffrey said that the shock was made worse by the bad timing, which resulted in panic buying, adding that the government had at first announced that a review of the fuel prices was to made next year and later on, in August this year.
He also said the rebate system was a means to appease the people but that it was minuscule to have any meaning.
"If we take RM300 as an average fuel spending for a motorist, that sums up to RM3,900 per year. With the maximum rebate of RM625, the motorist will still be losing thousands of ringgit.
"The losses incurred by the people is even worse when we look at the snowballing effect of the increase in fuel prices," he said, adding that the increases will multiply the cost of living.
In the case of Sabah, Jeffrey said the increase will raise the poverty rate of the State even more and worse affected would be the poor villagers who will have to pay for more for transportation, utilities and food items.
"The government's claim of saving RM13 billion from the reduction of fuel subsidies and that the saving will be used for increasing food supplies and distribution is rendered meaningless in the face of the reality that the higher fuel prices will increase costs in food production and distribution."
DAILY EXPRESS NEWS
Sabah
06/06/08
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