Now that US oil finishes below US$40 a barrel, for the first time since 2009, as reported over TV Channel NewsAsia on Tuesday, Aug 25, 2015 and (it) is slightly over US$44 for Brent, this good news should actually bring cheer to Malaysians but instead they are unhappy because they still pay RM2.05 for a litre of RON95.
The oil price had already dropped to about a third of what it was during its heydays. If I am not mistaken, it was then sold for US$130 to US$140 a barrel. At that time a litre of RON95 petrol was sold for RM2.40 so logically it (the price) should be reduced to RM0.80 a litre as of today.
Like it or not, we have been short-changed by the government. We should be paying RM1 or RM1.20 at the most for a liter RON95. That means Malaysians are overpaying RM0.85 for a litre of RON95 petrol to the government.
In bad times and when the less affluent, especially the impoverished, are living on an austerity drive, every sen saved counts and does make a difference.
This is addressed to the government to promptly take appropriate actions to reduce the petrol prices to its relevant (sort of deserving) status.
The chain reactions are an advantage to businesses and benefits to the consumers at large at the end of the line when raw material costs, as well as goods and supplies costs, become cheaper.
In view of the current economy slowdown, the people find it is a burden to them to be ‘forced’ to pay high prices for petrol and also for the 6 percent Goods and Services Tax (GST).
Well, since the the introduction of GST, people have been experiencing hardships, with price hikes on food and household items, medicines, healthcare products, vitamins, nutritional products and supplements, and medical life-saving oxygen is not spared.
For your information, prior to the implementation of GST, there was an understanding that all life-saving items and equipment would be exempted from duties and taxes.
Thus, how come patients and families need to pay GST for these life-saving essential items today? Are these supposed to be tax-free?
In short, the rising cost of living has skyrocketed mostly due to the high petrol prices and also the subsequent introduction of the GST on April 1, 2015 especially at the wrong time when the global economy is showing apparent signs of slowing down.
The reality is here. Yes, the people have to pay a lot more to buy foreign goods these days when the ringgit continues to fall against major currencies. As it is, it is already more than RM3 to buy one S$1 on Aug 25, 2015.
This is an urging to the Finance Ministry and the Treasury of Malaysia to do something concrete without much ado to strengthen the ringgit, before the currency weakens further beyond recovery.
It is time for the government to intervene to save the ringgit before it is too late, to stop investors pulling out from Malaysia.
LAU BING is a community activist and writer in Subang Jaya
