a Malaysia for Malaysians

A report by Malaysiakini on government annoucement of Fuel prices down by 15 sen (http://www.malaysiakini.com/news/93252) signs another economic mismanagement. While Global Price plunge almost 62% from it’s peak, our government only reduce  26% retail oil price from RM 2.70/litre to RM2.00/litre in stages. A strategy favouring and protecting big oil companies as they piled up high price oil contracted at peak price.

The Government prefer to protect few companies and keep their pockets fill up rather then millions of it’s people struggle trying to cope up with rising basic need prices. For how long, can they continue protecting their cronies.

Based on current World Crude Oil price , Malaysian petrol should at least retailed around RM1.70/litre. Such move will help oil companies reducing their losses arise from high contractual price.  Instead of Government subsidising Malaysian public, it’s now Malaysian subsiding Oil companies. Such move may not help economy to expand or ease inflations. Probably that’s why Najib still adamant to have 3% EPF saving reduced.

Energy Information Administration, USA reported that World demand for oil will remain flat through 2009, with extra 4 million barrel production capacity by end 2008. Bloomberg reported that USA Cut it’s oil price forecast by 43% to US$63.50/bbl from original estimate of US$112 in October .  Even if Government had based on this forecast , oil should retail at RM 1.54/litre .

Najib decision also indicate lack of synonym between him and his cabinet minister Shahrir Samad whom earlier had said price may return to RM1.92 /litre if world oil price below US$72/barrel. What a shame?

Reference : http://www.malaysiakini.com/news/93252