Saturday August 23, 2008 MYT 5:29:54 PM

Najib: No more fuel rebates if you don't appreciate them

By ROSLINA MOHAMAD

PEKAN: The Government might consider not issuing any rebates in the future if the people continued not to appreciate the initiatives taken to help reduce their financial burden due to high oil and food prices, said Deputy Prime Minister Datuk Seri Najib Tun Razak.

His response came about after a question noting that some people felt that the prices of diesel and petrol that had been reduced between eight and 22 sen a litre from Friday was too little.

Najib, who appeared to be a bit annoyed, said the people must understand that for every litre, the price was subsidised 30 sen.

He also said they have forgotten about the RM625 rebate given to owners with vehicles up to 2,000cc that was announced in June.

“The rebate, if translated, will cost between 35 sen and 40 sen a litre. If the people do not appreciate the rebates, it is better for us not issue any more in the future.

“It is better for us to transfer the allocation for the rebate to reduce the fuel price,” he told reporters after visiting an education and career exhibition here on Saturday.

Najib added that the decrease was not the market price but only a further reduction in the fuel price.

To another question, Najib said if the people still viewed the fuel price as high, the Government could always transfer the rebates to pump prices.

“However, we do not resort to such measure because if we transfer to pump prices, people driving big cars such as Bentley, Jaguar and BMW 7 series will also enjoy the subsidies.

“Is that fair?” he added.

On whether the reduction in fuel price would result in lower food prices, Najib said the Government hoped that the inflation trend would decrease.

He also said there would be further reduction but it would depend on the world fuel price.

In June, the Government announced the rebate payout to private vehicle owners. For motorcycle owners with engine capacity of up to 250cc, the rebate is RM150.