Cheaper fuel possible with drop in crude oil price

November 16:

MALACCA: There is definitely scope for the prices of RON95 petrol and diesel here to be reduced when global crude oil prices drop to between US$70 and US$75 (RM231 and RM248) per barrel, said Deputy Finance Minister Datuk Ahmad Maslan.

“If global crude prices drop to that range, then it would have crossed the current RM2.30 per litre price point, which is the subsidised price for RON95,” he said after a Goods and Services Tax (GST) briefing in Alor Gajah yesterday.

Crude oil price is hovering at around US$80 (RM260) per barrel this month.

“As informed earlier, RON95 petrol and diesel are both GST-exempt,” said Ahmad, who also clarified that the prices of residential pro­perty nationwide were expected to increase by between one and two percentage points upon the implementation of GST, and not three percentage points as said by Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan earlier.

On former prime minister Tun Dr Mahathir Mohamad’s allegation that the Government’s BR1M (Bantuan Rakyat 1Malaysia) for the lower income people was a form of bribery, Ahmad said the assistance actually helped spur the economy.

“The majority of BR1M recipients spend on necessities, and this stimulates economic activities and bene­fits businesses,” said Ahmad.

Pointing to the many projects awarded to Class F contractors du­­ring Dr Mahathir’s tenure, Ahmad said “tens of thousands” benefited that time when they spent on material and manpower to complete projects that could involve up to 400 components each.

“But for Datuk Seri Najib (Tun Ra­­zak), his way was giving cash to some seven million rakyat so that they can spend to spur the economy,” he said.

Source: www.thestar.com.my/News/Nation/2014/11/17/Cheaper-fuel-possible-with-drop-in-crude-oil-price/?