The announcement by the Prime Minister on the evening of 4 June 08 that petrol prices would jump by 78 sen (40.6%) from RM 1.92 per litre to RM 2.70, and diesel spikes of RM 1 (63.3%) from 1.58 per litre to RM 2.70 saw a gush of vehicles rushing to petrol kiosks to pump up their fair share of their before midnight.

The immediate impact could already be felt as there will be fears that the cause-and-effect reaction will see the cost of living becoming more expensive too. The petrol and diesel price hike is still 30 sen below the market price. Even with the increase, Malaysia’s remains among the cheapest among regional countries as the following table shows:

 Source: Star, 5 June 08, pg N3

Although PAS was somewhat supportive of the fuel spike, it was expected that the harshest criticisms would stem from other Opposition parties. NST reported that “a PAS government spokesman said they were supporting the price increase and subsidy scheme as the poor would still be assisted.” However the most shocking explanation for a reaction came from DAP’s Penang Deputy Chief Minister II YB Dr P. Ramasamy. The same NST article reported that Ramasamy had “criticized the cash-back system for motorcyclists and owners of small cars. He said the rich could abuse the system by buying smaller cars and using motorcycles.”

Ramasamy’s irrational hit against the wealthy as “system abusers” has drawn fire from MCA Cheras Service Center Director, Dr Jeffrey Goh who reasoned that, “even if wealthy people switch their big engine automobiles for sedan cars below 2,000 c.c. and scooters, this shows that they too are changing their lifestyles for a more humble one.”

“What’s wrong if the rich buy smaller vehicles for their transport? They will also be saving on fuel, and in the long run, the reduction in fuel emissions is a more environmental-conscious effort.”

The price hikes are all-inclusive, and everybody will feel the pinch one way or another. Added up, the 30 sen fuel subsidy will contribute to a national savings of RM 13.7bn of which RM 7.5 bn goes back as subsidies for petrol, diesel and gas; RM 4 bn for security; RM 1.5bn for cooking oil subsidies, RM 400mn for standardizing prices of rice in Sabah and Sarawak, RM 200 mn for flour subsidy and RM 100 mn for bread subsidy.

Moreover, the government’s 30 sen subsidy will remain, and fuel prices will automatically adjust in line with global price fluctuation, meaning that if the worldwide fuel prices decrease, fuel prices in Malaysia will also automatically come down.

Ramasamy, a former lecturer at Universiti Kebangsaan Malaysia for almost 30 years but whose teaching contract was not renewed, appears to show a disdain against people whom he assumes are well off. But what is more shocking is that a professor with a PhD can come up with such a “sour grape” rebuttal that holds no logic.

-MCA online