‘Price hike will do more good in long run’

MCA president Chua Soi Lek says the move to increase the price of petrol and diesel is part of the government’s subsidy rationalisation initiative to help only those who are in need.

Leven Woon, FMT

The government’s move to increase the price of RON 95 petrol and diesel by 20 sen will do more good for the country in long run, MCA president Chua Soi Lek said today.

Chua said the increase would help cut the government’s fuel subsidy of RM24.8 billion this year which could be redistributed to the poor.

“The government was previously subsidising 83 sen for every litre of RON95 petrol and RM1 for diesel costing the government up to RM24.8 billion last year benefiting the poor, the rich and also the foreigners.

“It has been the party’s stand that subsidy should only benefit the poor,” he said in a statement today.

Chua also welcomed the prime minister’s decision to raise the Bantuan Rakyat 1 Malaysia (BR1M) aid in Budget 2014.

“Since the inflation is still manageable, the increase in government aid will help to cushion the impact of subsidy cut and hope that more aid will be introduced to help the poor,” he said.