Fuel Hike 1 : Explain More before Forcing People to “Understand”

Petrol was raised to RM2.70 and diesel was raised to RM2.58 on 05 June suddenly by the government.

Malaysia has become a typical car-society. It is quite difficult to live a life in Malaysia without a car or motorbike due to the poor public transportation. It is quite clear, if you compare with neighbouring countries such as Thailand that has developed railway, city and long distance bus service, and short distance transportation such as so-called “tuk-tuk” or motorbike taxi.

41% of petrol hike hit peoples’ life directly. Moreover, it will cause the raise of the price in many things. Business world expressed that they have no choice but to increase the price. Economists concern over the escalation of the inflation. It will damage the domestic consumption and the economy.

Prime Minister hoped the people would “not resort to street demonstration” and “understand the fuel price hike”. However NGOs and opposition parties are planning the mass demonstration in KL centre. Was the explanation by PM enough to persuade people?

There are 2 main points in the explanation of the government for the fuel hike;

1) Due to the price hike in crude oil in the world market, “government expenditure will not be able to meet the difference between controlled selling prices and that in the world market despite higher revenues earned by Petronas”.
"Everyone has a role and responsibility in facing these trying times."
(08 June 2008, The New Straits Times http://www.nst.com.my/Current_News/NST/Sunday/Frontpage/2261823/Article/index_html)

2) Malaysia's gasoline price is cheaper than other Asian countries such as Singapore, Thailand and India.

As for the 2nd explanation, a lot of people criticised it saying that Malaysia is an oil producing country and it is strange to compare with non-oil producing countries. It is better to compare with other oil producing countries. Why are our neighbours Brunei and Indonesia not included here? (12 June 2008, My sinchew.com http://www.mysinchew.com/node/12718?tid=14 and 10 June 2008, Daily Express)

Regarding the 1st explanation, people are wondering where the oil profit of this country has gone. PKR Vice President Datuk Dr Jeffery Kitingan threw out doubts over the management of Petronas which agreements have been classified secret. (10 June 2008, Daily Express http://www.dailyexpress.com.my/news.cfm?NewsID=58060 )

People will think normally that if the oil price increases in the world market, the oil producing countries gains more profit.

People are wondering why government had to make the unpopular decision this time suddenly although they had received huge setback in the general election in March. Is there still anything untold? Are there any problems in management of Petronas? Or will oil wells in Malaysia face serious problems near future?

In order to “understand” the hike of as much as 41% and pay “a role and responsibility”, people need more explanation and information of the oil money and the management of Petronas in detail.