Thursday, July 15, 2010

New prices for fuel, sugar, cooking gas from 16th July 2010

The government has announced new prices for fuel, cooking gas and sugar, effective midnight.
The new price for RON 95 petrol will be RM1.85 per litre from RM1.80 per litre previously.
For RON 97, the new price starts at RM2.10 per litre, and will be reviewed monthly.
Diesel will be priced RM1.75 per litre from midnight.

For LPG (cooking gas), the new prices are RM18.50 for 10kg, RM22.20 for 12kg and RM25.90 for 14kg.

Sugar prices, meanwhile, have been increased to RM1.90 per kg from RM1.65 per kg.

In a statement, the Prime Minister's Office said the changes will help Malaysia achieve a position of fiscal responsibility and help reduce the national deficit.

"To meet these objectives, we have chosen to make adjustments to our subsidies. Even after these changes, the Government will still spend an estimated RM7.82 billion on fuel and sugar subsidies in 2010. The prices of fuel and sugar in Malaysia will still be among the lowest in the region," it added.

The subsidy rationalisation will, according to estimates, allow Malaysia to reduce Government expenditure by more than RM750 million in 2010.

"I think the amount itself is relatively small in the sense that the people?s purchasing people may not be that eroded, and may not be that inflationary, and I think this is a good way to consolidate the huge negative in the fiscal position," OSK-DMG economist Enrico Tanuwidjaja told reuters.

DBS Bank's Irvin Seah, meanwhile said the hike is a signal that the government will go ahead with its rationalisation plan, especially with fuel subsidies.

"There will be some mild impact to headline inflation and we can expect to see overall Malaysian prices going up.

"The petrol price hike is an added bonus to lowering the fiscal deficit. We have, anyway expected the fiscal deficit to fall this year on strong GDP growth," he added.

Oh no.....BLR up, now essential price up....why is the government thinking that our economy is going up when I do really see it that way ??!?!!!??

1 comment:

HL said...

everything up up up, only paid remain the same