Kuala Lumpur – Consumer Association of Penang (CAP) President SM Mohamed Idris was in full support of the decision made by the government to increase the price of fuel by 20 sen per litre.
He justified this statement saying that despite the price hike for fuel, Malaysia was still ‘the cheapest in the region.” He also said the hike in price was “not a substantial increase after all.’’
However, he did advise that as a result of this price hike, ”finances must be managed carefully whether individually or as a nation.’’
Others however feared the increase in petrol and diesel prices would have a domino effect on goods and services.
FOMCA President N Marimuthu said that the price hike will produce a ”chain-reaction, and will affect the middle and lower income citizens’’.
”Food prices will go up as a result of this increase, and this will effect prices of everything else in time to come.’’
He said the decision had also ”caught people by surprise” because no one expected the price hike as the Budget 2015 is next week.
He added that with the price hike, the public transportation service should be improved, so that ”people will not be forced to buy cars, and eventually end up spending more for petrol.’’
”The only thing that consumers can do now is to plan their budgets and spend appropriately, in order to survive.’’
MIC National Youth Leader Sivarraajh Chandran said this increase by 20 sen will burden the poor even if the government raises the BR1M pay out.
”It is a burden to the poor who comprise nearly 65% of Malaysians living in rural and semi-urban areas where the government gets most of its electoral support.
”It will also cause a chain reaction in society increasing the prices of essentials and services such as school buses (transport fees),’’ he added.
He suggested that ”the government should take initiatives to improve the economy and to ensure that important subsidies are provided for the people.”