7 June, 2008
M'sian minister warns public transport and school bus operators not to raise prices
TODAYonline
Public transport and school bus operators using "fleet cards" entitling them to fuel rebates have been warned not to increase fares, following the steep rise in fuel prices in Malaysia.
Entrepreneur Development Minister Noh Omar said on Friday: "I would like to stress that public transport and school bus operators are not affected by the fuel hike because they are entitled to diesel at RM1.43 (60 cents) per litre and they are given fleet cards.
"There is no reason they should increase their fares as announced by the bus operators association today."
He was commenting on reports that some bus companies in Puduraya, whose vehicles travel between towns and states in Malaysia, have raised fares by RM10.
Mr Noh said that the Commercial Vehicle Licensing Board (CVLB) would suspend or revoke the licences of public transport or bus companies that increased fares without the board's approval.
The pump price of petrol rose on Thursday by a whopping 41 per cent to RM2.70 a litre.
Diesel prices shot up 63 per cent to RM2.58 per litre.
Separately, Pan Malaysian Bus Operators Association president Ashfar Ali told The Star that, although the fleet card system entitled them to diesel at RM1.43 a litre, "the amount we get is enough for about 70 per cent of our operations. Unless we get at least 30 per cent more, we are in trouble."
Meanwhile, another minister on Friday defended the government's fuel price hike, in the face of public anger and street protests.
"I think it is wise. This is the first time we have come to grips with the subsidy system," Domestic Trade Minister Shahrir Samad said of this week's unpopular decision to cut extensive fuel subsidies.
Mr Shahrir dismissed protests over the decision, including a rally held in Penang on Friday.
He said: "Situations like this are always available as opportunities for our political enemies."
Fuel price hike: Lorry charges up 50pc
7 June, 2008
(New Straits Times) - Lorry operators in Perlis, Kedah, Penang and northern Perak have increased their charges by 40 and 50 per cent, depending on the capacity of their vehicles, effective yesterday.
Malaysia Lorry Transport Association (northern region) president Datuk Yusoff Ismail said the increase was inevitable because of the rise in diesel price.
The rate goes up by 40 per cent for lorries with capacity of between 28 and 40 tonnes.
Smaller vehicles will charge 50 per cent more.
"The increase is unavoidable as the price of diesel had gone up by 63 per cent.
The industry is also hit by the increase of the cost of spare parts and maintenance.
The pump price for diesel went up from RM1.58 per litre to RM2.58 on Thursday.
The association will reconsider the increase in lorry charges if the government allowed those in the business to buy subsidised diesel at RM1.43 per litre, which is extended to fishermen, boat owners and public transport operators.
Malaysian bus fares increase
Fuel and insurance surcharges up as much as five-fold; even so, operators losing thousands of dollars
TODAYonline
IF YOU are planning a Malaysia getaway but haven't booked your seats yet, that coach fare will now cost more.
The Express Bus Agencies Association (EBAA), which accounts for six in 10 buses heading across the Singapore border, has raised its fuel and insurance surcharges from a previous flat fee of $3, to between $5 and $16 — that's up to five times more — depending on your destination.
Taking an express bus from Singapore to Kuala Lumpur, for instance, will now cost $35 one-way, inclusive of the higher $8 fuel and insurance charge.
The new rates came into effect on Thursday. The EBAA — which comprises 20 bus operators including big guns such as Five Stars Tours, Transtar Travel, Sri Maju Tours and Travel and Luxury Tours and Travel — made the decision when the Malaysian government decided to end fuel subsidies. Diesel prices shot up 63 per cent to RM2.58 ($1.10) per litre on Thursday.
While the association has given the green light for members to collect the new fuel surcharge, there are litte pockets of reprieve for passengers.
Those who booked their tickets before Thursday will not be affected, said EBAA president Johnny Lim. And with most holiday-makers this June having booked their seats in advance, some operators say they will have to absorb the fuel price increases.
Grassland Express and Tours, for example, estimates losses of RM25,000 daily for this month, as tickets have mostly already been sold, said managing director Tan Boon Huat.
Over at Transtar, executive director Sebastian Yap said the company has 18,000 advance bookings on which it will not levy the increased fuel surcharges. It stands to lose at least RM144,000 by absorbing the costs, he said.
Grassland, in addition, has raised its surcharges to between $5 and $10 — below the EBAA-recommended rates. "Malaysia's fuel increase is too sudden and too high," said Mr Tan. "If we raised our surcharges according to the association's guidelines, I don't think customers would be able to take it."
Meanwhile, companies not involved with the EBAA are taking a "wait-and-see approach". Express bus operator Citi Exchange Express, which will work the surcharge into the ticket price, will assess "within the next few weeks" the impact of the diesel price hike. "We will let the big boys go first," said general manager Poon Cher Hock.
Odyssey Prestige Coaches director J Kalaiyarasan said he was waiting to see if his company could apply for fuel subsidies from the Malaysian authorities. The company operates 10 daily trips to Kuala Lumpur.
Transtar's Mr Yap was not optimistic. "God knows if we will get any subsidies," he said. "We doubt the process will be transparent and different companies may end up getting different amounts."
Two Malaysian bus operators based at Lavender Street car park said their ticket prices have not increased. Passengers going one-way from Singapore to Kuala Lumpur on a 33-seater coach pay $25 to $30.
Over at Golden Mile Complex, where most EBAA members are based, excluding the fuel surcharges, passengers already pay between $29 and $48 for a one-way ticket to Kuala Lumpur on a 21-seater or 26-seater bus.
The last time the fuel surcharges were increased — from $2 to $3 — was last year, said EBAA president Johnny Lim.
He denied any profiteering by the express bus companies. "Many of us have absorbed the rise in engine oil cost and toll," he said. "Our main customers are also not your millionaires, so there is a limit to how much we can increase prices."
According to EBAA, a RM1-per-litre hike in diesel pump price adds: RM250 to the entire cost of a bus trip to Kuala Lumpur. If 60 per cent of seats on a 26-seater VIP coach are filled — the average load factor during off-peak season, companies say — the extra cost works out to RM17 a passenger.
A bus heading to Genting Highland must add RM330 to the total cost of the trip, while a coach going to Alor Star or the Thai town of Hatyai sees its total cost spike by RM750.
For now, bus passengers tell Today, the surcharge hike is manageable. Finance clerk Chee Yoke Yin, 31, who travels to Kuala Lumpur once a month, would still prefer the bus to a budget airline. "It is more expensive to fly and fuel surcharge for air travel is also not cheap."
FRESH produce from Malaysia will cost more because of higher fuel prices there.
Petrol prices across the Causeway rose by 41 per cent and diesel by 63 per cent on Thursday. This translates to higher import costs and, ultimately, higher food prices for Singaporeans, who get 46 per cent of their vegetables and over a quarter of their fresh fish from Malaysia.
For example, the price of 1kg of fresh chicken here has risen by 30 cents since Wednesday.
Mr Toh Chai Ka, a fresh poultry supplier, said: "Fuel prices in Malaysia have increased, and transport cost for food has also increased. It's not cost-effective if we do not also increase our prices."
The Poultry Merchants' Association said the price hike is inevitable but has urged its members to try and absorb the increase for now.
As for NTUC FairPrice, its director for integrated purchasing, Mr Tng Ah Yiam, said: "We expect that it will take some time for retail prices to reflect changes as a result of the recent fuel price hike in Malaysia. As a cooperative, consumers can be assured that NTUC FairPrice always strives to be the last retailer to increase our prices, and the first to drop prices where appropriate."
Consumers here are already feeling the pinch.
Said one woman interviewed by Channel NewsAsia: "If you go to the wet market, you can hear everybody grumbling about how things are now so expensive. You don't get your pay increase — but all prices are going up."
The Agri-Food and Veterinary Authority (AVA) said that it is looking to other countries, such as Vietnam, to diversify Singapore's food imports. This will help to keep prices for basic food items more competitive. — Channel NewsAsia
Saturday June 7, 2008 MYT 5:13:45 PM
PM: Get true picture of global oil price hikes
KUALA LUMPUR: Datuk Seri Abdullah Ahmad Badawi said he hoped the people would obtain the correct information on the global fuel price increase phenomenon so they could understand what the country was facing.
Each and every one of us has a role and responsibility in facing these trying times. “As such, let’s face this challenge together with resilience for the greater good of the nation and our future generations,” he said.
The Prime Minister said this in his speech Saturday at an investiture held in conjunction with the Yang di-Pertuan Agong’s birthday at Istana Negara.
“The Government has held out for as long as possible to protect the people from fuel price increases but the price of oil has risen steeply and rapidly in the world market,” he said.
Abdullah said that in January 2007, the price of crude oil in the world market was only around US$50 (RM164.50) a barrel.
Now, 18 months later, it had risen to almost US$130 (RM427.70) a barrel and analysts were predicting it would continue to rise up to US$200 (RM658) a barrel, he said. The Prime Minister also said the Government was aware the fuel price increases had caused uneasiness and worry among the population.
The Government would do all it could to alleviate the burden experienced by the people, especially by those in the lower income group and among the steps to be taken was increasing direct aid to them besides ensuring prices of essential goods remained affordable, he said.
He said the Government would also take steps to save on public sector expenditure, increase the range of goods under the price control scheme, improve public transportation and postpone projects that are not urgently needed.
He said there were many economic challenges left to be tackled to ensure Malaysia continued to move forward.
Abdullah said the national economy experienced encouraging growth last year proving the nation was on the right track.
He added that real gross domestic product growth last year was 6.3% despite a challenging world environment and all sectors had recorded a strong growth especially for services, construction, mining and plantation.
Consumer growth was also healthy at 11.8%, he said.
Saturday June 7, 2008 MYT 4:16:51 PM
Ipoh cabbies impose RM1 surcharge
By SYLVIA LOOI
IPOH: In an act of defiance, the city’s 1,200 taxi drivers will impose a RM1 surcharge on top of the RM4 minimum fare here.
Ipoh City Taxi Operators Association secretary Leong Yew said that the cabbies from 15 associations had unanimously agreed to the surcharge from Saturday.
“We have no choice but to impose the surcharge as the petrol price has increase by 40%,” he told a press conference at the association's premises here.
The association's members, he added, had also agreed that they would charge an additional 20% for trips exceeding 10km.
Leong said besides the increase in fuel prices, taxi drivers also had to put up with the spiralling prices of batteries, tyres and spare parts.
The drivers’ decision came despite a warning from Entrepreneur and Cooperative Development Minister Datuk Noh Omar that recalcitrant taxi drivers would have their permits revoked if they raised fares.
Asked whether taxi operators were worried about a clampdown by the authorities if they imposed the surcharge, Leong said they were doing it for their livelihood.
“If the authorities come after us, we will stay off the road,” he said, but stopped short of saying that they would go on strike.
Leong said members would reduce the surcharge once they were given fleet cards.
“At present, only taxis which run on diesel enjoy fleet cards while taxis running on petrol still have to pay the same (market) price,” he said, adding that only 20% of Ipoh taxis ran on diesel.
Gopeng MP Dr Lee Boon Chye, who was also present, said he would help the drivers write to Noh on the matter.
“I also hope that the relevant authorities will speed up the issuance of fleet cards to taxis running on petrol,” he said.
“At present, only taxis which run on diesel enjoy fleet cards while taxis running on petrol still have to pay the same (market) price,” he said, adding that only 20% of Ipoh taxis ran on diesel.
Gopeng MP Dr Lee Boon Chye, who was also present, said he would help the drivers write to Noh on the matter.
“I also hope that the relevant authorities will speed up the issuance of fleet cards to taxis running on petrol,” he said.
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