Thursday, June 30, 2005

"Petrol Prices May Very Well Go Up Again"

Petrol price Up Again? Posted by Hello

In less than 2 years in office, Prime Minister Pak Lah has been ruling in the world of economic & likely, political uncertainties. The price of crude oil have risen sharply over the last two years from USD26 to the present price that lingers in the USD60 region.

In view of this development, without doubt, the domestic fuel prices has caused increase of far greater amount of subsidies.

Recently, the Prime Minister has given a broad hint that the retail price of petrol could be revised because of the high price of crude oil.

“We have to make preparations, and if they are tough and a little terrible, we all have to be patient,” Datuk Seri Abdullah Ahmad Badawi said when asked whether the Government would increase petrol prices. He was speaking to reporters at the end of his visit to the Integrity Institute of Malaysia here yesterday.

Petrol prices went up by 10 sen a litre last month. Abdullah, who is also Finance Minister, said the Government would also have to review this year’s economic forecast. “We have to make new forecasts which take into account the high price of petroleum,” he said.

Bank Negara had earlier forecast that the Gross Domestic Product this year would be between 5% and 6%. Asked whether petroleum subsidies would be removed, he said that was not something which was impossible. He said action was necessary as the price of petroleum was very high now. The price of crude oil surged to a record US$60 (RM228) plus per barrel on June 20.