Govt only saved RM1.4 bln from petrol price hike in 2006, says PM
Bernama (27/5/08): Prime Minister Datuk Seri Abdullah Ahmad Badawi said the real subsidy savings for the Government was RM1.4 billion following the petrol, diesel and Liquefied Petroleum Gas price increase on Feb 28, 2006.
Although the price of petrol and diesel was increased by 30 sen per litre and LPG by 30 sen per kg on Feb 28, 2006, following the cut on subsidy cost, the estimated savings of RM4.4 billion as announced by the government was based on the price of world crude oil being US$61 per barrel at that time.
"However, as the price of crude oil continued to climb for several months hitting US$74 per barrel, the actual savings as at December 2006 was reduced to only RM1.4 billion," he said at the Dewan Rakyat sitting here Tuesday.
The actual savings of RM1.4 billion was based on a crude oil price of US$74 per barrel.
Abdullah said this in his written reply to a question from Salahuddin Ayub (Pas-Kubang Kerian) on the total amount of money spent from the savings of RM4.4 billion from the oil subsidy cut which was meant to be used for improving public transportation services.
Abdullah, who is also Finance Minister said the savings were channelled in stages into the National Public Transportation Trust Fund (KWAPA) which was set up in May 15, 2006.
He said among other objectives, KWAPA was established to upgrade the integrated public transportation system in the country as well as improve the quality of public transport especially in terms of coverage and frequency of services.
"A total of RM550 million has already been channelled into KWAPA and RM498.77 million have been spent and identified for expenses related to improving the public transportation system.
"The remaining savings will be channelled into KWAPA in 2009," Abdullah said.
He said the total subsidy borne by the government for petrol, diesel and LPG from 2000 till 2007 was RM37.4 billion.
For 2006, the amount of subsidy for petrol, diesel and LPG was RM7.3 billion while for last year it was RM8.7 billion and the projected amount for this year is RM18.31 billion based on a crude oil price of US$105 per barrel, he said.
"This amount will go up based on the world price of oil which has continued to rise, and is currently at US$130 per barrel," Abdullah said.
He also said the government would continue to look into the welfare of the people and on ways to reduce their burden amid the increasing price of oil.
Although the price of petrol and diesel was increased by 30 sen per litre and LPG by 30 sen per kg on Feb 28, 2006, following the cut on subsidy cost, the estimated savings of RM4.4 billion as announced by the government was based on the price of world crude oil being US$61 per barrel at that time.
"However, as the price of crude oil continued to climb for several months hitting US$74 per barrel, the actual savings as at December 2006 was reduced to only RM1.4 billion," he said at the Dewan Rakyat sitting here Tuesday.
The actual savings of RM1.4 billion was based on a crude oil price of US$74 per barrel.
Abdullah said this in his written reply to a question from Salahuddin Ayub (Pas-Kubang Kerian) on the total amount of money spent from the savings of RM4.4 billion from the oil subsidy cut which was meant to be used for improving public transportation services.
Abdullah, who is also Finance Minister said the savings were channelled in stages into the National Public Transportation Trust Fund (KWAPA) which was set up in May 15, 2006.
He said among other objectives, KWAPA was established to upgrade the integrated public transportation system in the country as well as improve the quality of public transport especially in terms of coverage and frequency of services.
"A total of RM550 million has already been channelled into KWAPA and RM498.77 million have been spent and identified for expenses related to improving the public transportation system.
"The remaining savings will be channelled into KWAPA in 2009," Abdullah said.
He said the total subsidy borne by the government for petrol, diesel and LPG from 2000 till 2007 was RM37.4 billion.
For 2006, the amount of subsidy for petrol, diesel and LPG was RM7.3 billion while for last year it was RM8.7 billion and the projected amount for this year is RM18.31 billion based on a crude oil price of US$105 per barrel, he said.
"This amount will go up based on the world price of oil which has continued to rise, and is currently at US$130 per barrel," Abdullah said.
He also said the government would continue to look into the welfare of the people and on ways to reduce their burden amid the increasing price of oil.
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