Thursday June 5, 2008

Khalid: Rebates a must to cushion impact of higher fuel prices

SHAH ALAM: The cash rebates to owners of cars and motorcycles to cushion the impact of higher fuel prices are necessary to ease the burden of the people, said Selangor Mentri Besar Tan Sri Khalid Ibrahim.

He said about 30% of all economic activities were related to petrol or petroleum and the rise in fuel prices would have an impact on the people.

However, he said problems could arise in the allocation and distribution of the rebates.

“I hope they (the Federal Government) have the staff to hand out the rebates because it will not be easy,” he told a press conference after chairing the weekly state executive council meeting yesterday.

Khalid said it was good that prices of LPG for cooking gas and taxis would remained unchanged.

On claims that the fuel price increase would lead to inflation rising by 1%, Khalid said the question was not the percentage but whether consumers have money in their pockets.

In Kota Baru, PAS plans to discuss with fellow Pakatan Rakyat parties to send a strong protest to the Government over the increase in petrol prices and electricity tariff.

PAS vice-president Datuk Husam Musa said the two increases would cause a decline in productivity at the macro-economy level which would eventually affect the national economy.

He said the Government should come up with another mechanism to counter the world fuel price increase.

He urged the Government to make public all dealings of Petronas besides disclosing the profits that Petronas made from the current world prices.

“Transparency will put to rest suspicions about the Government’s move to raise fuel prices,” he said.

Husam said Malaysia remained a net exporter of oil and the jump in revenue derived from higher world prices should be able to subsidise fuel prices.

He said that road tax should be abolished instead of only allowing consumers to enjoy rebates upon renewal.

“The Government earns around RM5bil from road tax. PAS is convinced there are other ways to address the issue of rising fuel price,” said Husam.