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FUEL PRICE HIKE: Transport firms fear impact of diesel price
By The New Straits Times
June 6, 2008
 

KUALA LUMPUR: There will be a national public transport crisis if the government does not allow bus fares to rise.
 
Konsortium Transnasional Bhd (KTB) chairman Datuk Nadzmi Salleh said the RM1 per litre increase in the price of diesel would hit bus firms badly.

He said the company would incur an additional RM3.5 million in fuel charges every month.

He said the company could not bear such a burden as it was already losing more than RM2 million monthly on its bus operations.

"Public transport services are going to be halted if a fare review does not happen soon. Then, the government should not blame bus operators because they have already been warned."

KTB is calling for a 54 per cent hike in the express bus fare and 30 per cent hike for city bus services.

Nadzmi also called for higher subsidies for diesel for public transport.

"Only 30 per cent of our diesel usage is subsidised at the RM1.43 per litre rate. Which means that we will now be paying RM2.58 per litre for the rest."

Pan Malaysian Bus Operators Association president Datuk Mohamad Ashfar Ali said bus operators would be forced to cut down on non-profitable routes if the government did not allow for a fare hike soon.

"We would also have to stop operating during non-peak hours. Currently, we are bound by law to follow a scheduled timetable. The government has to allow for more flexibility in this matter.

"We should also be allowed to charge a maximum and minimum rate, so that we can charge lower rates during off-peak and the maximum rate during peak times."

Commercial Vehicle Licensing Board chairman Datuk Markiman Kobiran could neither confirm nor deny whether a fare review was forthcoming.

He said a study had been completed and "papers would be submitted to the Cabinet soon".

"But a fare hike is only one of the methods to achieve a situation where public transport operators are able to operate viably and maintain a high level of service.

"Other possibilities we are looking at include toll reductions."

A spokesman for Sri Maju Group said a reduction in toll charges would be a good way to help bus operators.

"The government can also help us by reducing tax on imported spare parts," she said.

However, Nadzmi does not think lower toll charges would make much of a difference because toll payments only make up four per cent of his company's operation costs.

The Selangor and Kuala Lumpur Lorry Operators Association said the diesel price hike would result in a chaotic situation for the transport industry.

In a statement yesterday, the association said transport operators were already burdened by increases in the prices of lubricants (25 per cent), tyres and tubes (20 per cent), spare parts, mild steel products and other incidentals (30-50 per cent).

"We recommend an increase of 35 per cent in transport rates to take effect immediately. Many of our members are contemplating stopping operations until the new transport rates are in place," said the statement.

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Category: Oil & Gas

15 WAYS TO NEGATE THE RECENT FUEL PRICE INCREASE


by TV Smith 

June 5, 2008

Improve your vehicle's fuel consumption - by as much as 40% - by changing the way you currently drive. There is a catch, though. You'll no longer qualify as a Malaysian driver...
Link to this artcle: http://www.tvsmith.net.my/duasen/130505_fuel.html
1. Pump More Here & Pump Less There
Don't wait until your car senget one side before inflating your tyres. Low tyre pressure forces your engine to work and drink harder. Driving on underinflated tyres also reduces the life of the tyres. A lose-lose situation.

2. Dig Your Nose
Digging your nose is more economical than gunning your engine while waiting at traffic lights. Jack rabbit starts cost you even more. Never floor the pedal unless there's an express bus looming in your rearview mirror. Learn how to accelerate (and brake) smoothly for better fuel efficiency.

3. Pay It Again Sam
You may be using an alternative toll-free road as a sign of protest or as a means of saving money. If the the old route is perpetually congested and longer, you may end up burning more fuel than the toll saved. Sad but often true.

4. Go Look Stop
Are you one of those who frequently get stuck behind a stalled vehicle, crash into road humps or potholes? If you look further than 3 meters while driving, you can better anticipate obstacles and avoid fuel guzzling start-stop situations. Good reason not to tailgate too.

5. Make Up Your Mind
I don't know if it's kiasuness or indecisiveness that makes people drive with the other foot riding the brake pedal. A slight touch might not be noticeable to you but it strains the engine, wears out your brakes prematurely and confuses the poor driver behind. Make sure your handbrake is down all the way too.
Link to this artcle: http://www.tvsmith.net.my/duasen/130505_fuel.html
6. Get Rid Of Freeloaders
The less passengers the less weight. The less load the better the fuel economy. If you want to car pool, pool the cost. Clear your boot by removing unutilised items like golf sets, prams, barbecue sets, scuba gear, etc.

7. Bear With Crow Shit
Park your car under the shade wherever possible. The hotter your car interior becomes, the harder the air-conditioning needs to work later, the more fuel the engine consumes as a result. The hot sun also increases fuel loss through evaporation.

8. Stay Safe & Save
Fuel consumption jumps dramatically after a certain speed. Keeping to the speed limit saves you more than traffic fines. Driving at 120 kph, rather than 100 kph, may increase fuel consumption by another 25 percent. The dangers of speeding far outweigh the travel time saved.

9. Get A Life
Stop pissing off your neighbours in the mornings and do yourself a favour. Most modern cars have no chokes or carburetors, so there's no need for long, noisy engine warm- ups. Hard revving a cold engine kills it faster than driving it.

10. Let The Bugger Go
There's no need to catch up with an offending driver just to show a finger or fist. You end up either paying more for fuel or a hefty hospital bill.

11. Learn From Your Mistakes
If your wife or girlfriend says she needs to pop into a warehouse sale for a quick look-see, find a parking spot and turn off the engine. Long idling wastes fuel and pollutes the environment.
Link to this artcle: http://www.tvsmith.net.my/duasen/130505_fuel.html
12. Don't Be A Drag Queen
Remove that empty showoff roof rack or that ugly ill-designed Ah Beng spoiler as it causes unnecessary drag. Smoking with your windows down at cruising speed also increases drag. Newer cars (except the Juara) are aerodynamically designed for fuel efficiency. Stop adding unnecessary external accessories such as jutting elbows.

13. Meter The Meter
Keep track of your car's fuel consumption by monitoring the odometer or tripmeter. A sudden drop may mean mechanical problems. Timely oil change and other maintenance can save you significant amount of fuel.

14. Try A Different Nasi Lemak
All petrol are the same except for the additives and advertising. Contrary to what most Malaysians believe, you can mix your fuel. There's really no need to waste fuel by driving out of the way just to fill up your favourite brand and redemption card.
Link to this artcle: http://www.tvsmith.net.my/duasen/130505_fuel.html
15. Get A New Boss
Use online banking or find a better employer. Stop driving to an ATM every hour just to check whether your salary is in.
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Category: Oil & Gas
By Puvaneswary Devindran , The Borneo Post
Friday, June 6th, 2008
 

KUCHING: Unions in Malaysia have no choice but demand for a salary increase of at least 50 per cent, said the Malaysian Trades Union Congress (MTUC) Sarawak Division yesterday.

It said in a press statement that the fuel increase would surely lead to another round of price increase on anything and everything from taxi fares to bus fares, from cooking oil to a packet of nasi lemak.

“Our experience points to the fact that in Malaysia, price increases in commodities and basic items always benefited businesses, not ordinary workers. A classic example is when the price of sugar increased by 10 sen a kilo, a cup of kopi also increased by 10 sen - as if you need a kilo of sugar to make a cup of kopi,??? said MTUC Sarawak secretary Andrew Lo.

As a result, ordinary Malaysians simply cannot afford to pay the market price for petrol, he said.

He claimed that already the prices of cars and toll (due to one-sided deals signed with toll concessionaires) were among the highest in the world, while public transport remained hopeless in cities and non-existent in rural areas.

“People have no choice but to own cars. Many owners have to take a one-year loan just to pay off a basic car, with their car value less than the outstanding loan. This is a result of economic mismanagement that has marginalised the poor, created billionaires and income disparity that is the second highest in Asia, behind only Papua New Guinea,??? he said.

Lo, who is also the CEO of Sarawak Bank Employees Union, said contrary to government claims, petrol was actually cheaper in Singapore, Japan or even the US after taking into account one of the fundamental principles when comparing prices across different countries - purchasing power parity.

He said simply put, Singaporeans still pay much less for their petrol because Singaporean workers earn Singapore dollars and not Malaysian ringgit.

He said even in absolute terms, for example, a typical clerical employee in Singapore earns S$1,200 per month compared to RM900 in Malaysia and RM600 in Sarawak plus Singaporeans only pay about S$2 per litre.

“Per capital income of Singapore is RM100,000. Malaysia is only RM20,000. Singapore does not produce a drop of its own crude oil,??? he added.

He said even in Japan and the US, one would find petrol prices relatively cheaper and that minimum wage in the US was about US$4 per hour and a high school teacher makes at least US$40,000.

He said petrol price in the US was only about US$1.20 per litre. He questioned why the production cost plus distribution cost plus profit amounts to 20 per cent of the pump price.

He said MTUC called on the government to give a full transparent and detailed disclosure of the fuel subsidy as well as the profits of Petronas, independent power producers and other oil companies, oil palm and timber companies every year.

He claimed that the government had ‘forced’ the public to own cars by mismanaging the public transport sector, inflicted a high price on cars, burdened motorists with extensive toll roads, suppressed wages and now wanted to be paid market price on petrol.
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Category: Oil & Gas
Yong: Fuel price hike may result in serious political fallout
By The Star
June 6, 2008


KOTA KINABALU: The rise in fuel prices may result in a serious political fallout for the Barisan Nasional government, a Sabah component leader warned yesterday.

Sabah Progressive Party (SAPP) president Datuk Yong Teck Lee wondered whether the overall consequences of the fuel subsidy cuts had been carefully considered.

He said the immediate reaction to the price increase among Sabahans was that of despair.

“If a government loses the goodwill of the people, then it will find them even more difficult to govern,??? Yong, a former chief minister, told reporters here.

He said political parties, elected representatives and civil servants were likely to feel more pressure from the people to “do something??? to ease their economic woes.

He said the fuel price increase had come almost immediately after people were finding they had to pay more for some types of rice, adding that those most affected were the low- and middle-income earners.

“For those who have just been earning enough to make ends meet every month, the fuel price increase will be a serious blow as they will have to pay more at the petrol pump and when they buy groceries,??? Yong said.

He said even middle-income earners with salaries of between RM4,000 and RM5,000 would be reeling from the effects of the price hike.

Yong also doubted the impact of the RM625 rebate for vehicle owners and RM125 for motorcyclists as there was a time lapse between when money was spent on the fuel and when they would receive their rebate.

He said many people continued to question why Malaysia, as a net petroleum exporting nation, was experiencing a negative impact from a spike in global oil prices.

“The man in the street is puzzled as to why ordinary folks are losing out when Petronas is making so much money,??? he added.

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Subsidy cut turns up Umno heat on Abdullah
By The Malaysian Insider
June 6, 2008


KUALA LUMPUR, June 6 — The battle lines for the top prize in Umno were drawn during the ruling party’s two-day retreat. Most supreme council members including Datuk Seri Najib Tun Razak supported Datuk Seri Abdullah Ahmad Badawi’s plan to contest the elections in December and hand over power not long after that. But Tan Sri Muhyiddin Yassin and Datuk Seri Rais Yatim felt otherwise. They wanted Abdullah to step down before December, setting the stage for them to quit the Cabinet and emerge as challengers for the president’s and deputy president’s posts.

While Abdullah may take some comfort from the support he received from his deputy and the majority of supreme council members, this will not spell the end of moves to push him out early or set a succession timetable with a definite hand over date.

The Malaysian Insider has learnt that Najib pointed out that there should not be any pressure or time frame set on Abdullah. He added that party president should be given space to think matters through thoroughly before discussing the succession plan with him.

Still, the general view among council members was that the handover of power should take place not too long after the party elections. This scuttles Abdullah’s hopes of staying on until 2010. Besides the succession plan, a raft of other issues was discussed by supreme council members. This included the need for Umno politicians to win over Chinese and Indian voters and the recent 40 per cent hike in petrol prices.

During the retreat, a few ministers disagreed with the decision to reduce subsidies and allow the pump price of petrol to increase to RM2.70 per litre. In this group were Muhyiddin and Rais. The Malaysian Insider understands that the Foreign Minister was also among a clutch of ministers who during the weekly Cabinet meeting on Wednesday felt that the government should hold off reducing the subsidies for a few months.

But the majority of ministers during the Cabinet meeting including Najib and Muhyiddin felt that the government could not afford to continue with high levels of subsidy for much longer. Since the 40 per cent petrol price hike was implemented on Thursday, there has been an adverse reaction on the ground, including from Umno members.

Stinging SMSes have been sent from the grassroots to politicians in the capital, questioning the fitness of Abdullah and the Cabinet to continue running the country and pleading with the leadership to show empathy.

This strong reaction from the Umno ground may have prompted Muhyiddin to have second thoughts about the timing of the price increase. With the branch elections only weeks away and anger against the hike percolating across the country, Umno politicians seeking higher office in the party will have to distance themselves from this unpopular decision of reducing subsidies.

There is a good chance of many more Umno ministers slamming the price hike before the branches start meeting in mid-July.

Subsidy cut turns up Umno...

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