by Tony Pua
Last week, Deputy Finance Minister, Datuk Chua Tee Yong claimed that daily fluctuations of petrol and diesel prices under a free-float system will be more difficult for kiosk operators in Malaysia as daily fluctuations in fuel prices would make it harder for them to price their products based on global crude oil prices.
The excuse given by the Deputy Minister is utterly untenable and hence unacceptable.
Petrol pump prices all over the world – from the United Kingdom to Australia, or nearer home in Singapore and Indonesia – fluctuates on a daily basis in a competitive manner without any problems faced by either the kiosk owners or consumers. Datuk Chua Tee Yong must explain why is it that only in Malaysia that our kiosk operators are unable to cope with such fluctuations? Is because he believes that Malaysians are “stupid” as alleged by none other than former Prime Minister Tun Dr Mahathir Mohamad himself?
Or is it more likely that the Government wants to maintain a managed float, or perhaps more aptly known as a “dirty float” as highlighted by my colleague, Member of Parliament for Kluang, Liew Chin Tong because it wants to collect hidden taxes from the rakyat to cover the Government’s budget deficit? This reason is definitely more likely because the drastic drop in global oil prices has caused a dent in the Government’s revenue collection. This is especially since oil revenues constitute approximately 30% of the total Government revenue collected.
This hidden tax is most unethical and unscrupulous on the part of the Government because the Rakyat do not know how much they are being taxed, and the tax rates could vary from day to day, week to week. Nobody can say for certain whether they are taxed at 2% or 6% or 10% or even more. A hidden fuel tax is an unethical taxation system even more unreasonable than the GST. Such arbitrary taxation is a mark of a draconian government preying on the unknowing rakyat.
Since there are no more subsidies for petrol, the Federal Government should simply just fix a price cap for petrol pump prices and allow all the companies to compete freely in setting prices below the cap. The competition between the various petrol companies as well as between petrol kiosks will ensure that the consumers will have the benefit of the lowest possible market price for petrol.
In the past, the Government claimed that the petrol kiosks are not allowed to compete because the fuel prices are subsidized. Now that there are no more subsidies, this “excuse” also no longer valid.
Therefore we call upon Datuk Chua Tee Yong and the Federal Government to stop giving flimsy excuses to prevent the market to compete efficiently and allow consumers to enjoy the benefits of lower global oil prices. -The Rocket
