"Deep Economic Crisis" Pas Selangor warns of inflation and rising prices due to diesel subsidy withdrawal
Paya Jaras assemblyman pointed out that the current price hike was far more substantial under with an increase of RM1.20 per litre for diesel, a 55.8 per cent rise, bringing the price to RM3.35 per litre.
SINAR DAILY REPORTER
SHAH ALAM - The government's recent withdrawal of diesel subsidies is expected to have a profound impact on Malaysia's economy and inflation rates, warns Pas Selangor Commissioner Datuk Dr Ab Halim Tamuri.
He highlighted the economic repercussions of the subsidy removal, drawing parallels to previous price hikes.
"In 2010, under the Barisan Nasional (BN) government, a mere 5 sen per litre increase in fuel prices led to a 3.5 per cent rise in the Consumer Price Index (CPI) and a 14.3 per cent increase in the Producer Price Index (PPI)," he said in a statement today.
The Paya Jaras assemblyman pointed out that the current price hike was far more substantial under with an increase of RM1.20 per litre for diesel, a 55.8 per cent rise, bringing the price to RM3.35 per litre.
He warned that such a significant and sudden increase would cause an economic shock, triggering a multiplier effect that would impact various economic and social sectors across the nation.
The effects of this price hike are already being felt, he said, with uncontrolled increases in the prices of goods and services in all sectors.
"The economic repercussions are widespread, with rising costs impacting everyone," he added.
He also criticised the lack of clarity in the government's diesel subsidy programme under BUDI Madani.
"The RM200.00 subsidy lacks clear implementation methods, leaving many details unaddressed and resulting in vulnerable groups like farmers and paddy planters being excluded from eligibility.
"If the PH government's aim is to prevent smuggling and leakage of subsidised diesel, and to provide targeted subsidies, we urge them to review this decision and introduce more focused, phased measures," he said, emphasising the need for comprehensive mechanisms to be in place before implementing it to avoid causing harm to Malaysians.
He alleged that the government was indifferent to the impact on the public and warned that government's actions could drive the nation towards a severe economic crisis.
"The government is leading the country and its people into a deep economic crisis," he said.
