Friday 6 July 2012

‘RON97 petrol price cut no polls gimmick’

by Jonathan Chia,


KUCHING: The government’s decision to reduce the retail price of RON97 petrol by another 20 sen to RM2.60 per litre is not an election gimmick, says Assistant Minister of Social Development (Youth) Abdul Karim Rahman Hamzah.

“The announcement has nothing to do with the general election. It reflects an honest and transparent government. If the government is not honest and transparent, it would just continue selling the item at higher price and reap more profit which I think the Pakatan Rakyat government might do that if it were in power,” Abdul Karim said yesterday.

The Asajaya assemblyman noted that everyone knew that the prices of global crude oil had dropped considerably lately and this was reflected in the price of RON97 which had fluctuated according to the global crude oil prices.

State PKR vice-chairman See Chee How meanwhile said the price reduction did not really benefit the motorists because only about 10 per cent of them were using RON97.

He said that since most motorists were using RON95 the Batu Lintang assemblyman suggested that its price should be reduced.

State DAP chairman Wong Ho Leng also said the price reduction was an election gimmick considering that election was just around the corner. He admitted though that the reduction was caused by the drop in global crude oil prices brought about by market forces.

The government announced on Wednesday that the retail price of RON97 was reduced by 20 sen to RM2.60 per litre effective yesterday.

Second Finance Minister Datuk Seri Husni Hanadzlah said the lower price was in line with the dip in average global crude prices in June.

He said that the retail price of RON97, in principle was fixed based on a managed float whereby the monthly price was determined according to market forces.

Prior to the announcement on Wednesday, the government had announced a reduction of 10 cent per litre for RON97 in June.

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