Last minute announcement of subsidy rationalisation to prevent traders increasing price many times - Rafizi

Posted in Local News / By Danny Tan / July 11 2024 4:07 pm

The government’s practice of last minute or sudden announcements when it comes to subsidy rationalisation is to prevent traders from hiking prices of goods ‘many times over’, economy minister Rafizi Ramli said. Conversely, any advance notice will result in traders taking advantage of the situation, he added.

“We have to balance the effect if the signal is given earlier, because the problem is that the increase in the price is set by the traders. If, for example, it has been announced earlier, it will cause the increase in the price of the item to happen many times and that is why the government’s decision is better made when it has been completed at the government level,” Rafizi told parliament today, reported by Malay Mail.

“That will reduce the risk of the prices going up many times over,” the Pandan MP said.

Rafizi was referring to the sudden announcement of the increase in diesel pump prices, as part of the diesel subsidy rationalisation programme. On May 21, PM Datuk Seri Anwar Ibrahim announced that the cabinet has approved the programme, which is expected to save the government around RM4 billion a year.

The PM did not mention dates, but on June 9, finance minister II Datuk Seri Amir Hamzah Azizan announced that the pump price of diesel in Peninsula Malaysia would go up by 56% to RM3.35 per litre on June 10.

Expect the same pattern of announcement for the removal of blanket subsidy for RON 95 petrol, which is expected by many to happen this year.

Last month, when asked if the move will be implemented this year with a pre-announced timetable, Rafizi said that the government is keeping its cards close to its chest in the same way it did with diesel. “We did surprise everyone with diesel, and I think everyone is up for another surprise,” he told Bloomberg on the sidelines of the World Economic Forum’s summer gathering in Dalian, China.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

Comments

iomaon Jul 11, 2024 at 4:10 pm

So traders won’t increase price with last minute announcement?
Like or Dislike: 36 2

Reply
- Sohaion Jul 11, 2024 at 6:59 pm
  
  Yes… smart no more price increased.
  Like or Dislike: 2 4
  
  Reply
  - Dah Menang Semuaon Jul 12, 2024 at 8:03 am
    
    Lucky removing the subsidy
    Of the widely used diesel
    In commercial didn’t
    Trigger price increased yet
    (At least I don’t feel any)
    Well done!!
    Like or Dislike: 0 0
    
    Reply
strangeron Jul 11, 2024 at 4:21 pm

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Not many times.but one time higher increase rate. Genius lah abang jie ni.
Like or Dislike: 27 0

Reply
Why So Seriouson Jul 11, 2024 at 4:31 pm

Yes because like he said in Sg Bakap kempen he is all about sudden surprises, but his surprises turn out to be horror nightmare kind. Not sure if Msians are still willing to be hack & slash by this PH Gomen.
Like or Dislike: 30 1

Reply
- A one term Madani...A clear and present dangeron Jul 11, 2024 at 6:50 pm
  
  At coming GE,if one of the coalition partners pull out of Madani,lets give this dude and co a last minute surprise..he is so adamant in using his surprise..so can we voters.
  We cant be given too many surprises..already many of our savings are wiped out during the pandemic.
  Menteris have pension,perks,drivers,Alphards,Camrys,hefty emoluments.We only have the bare minimum to survive.
  The Rishi Sunak surprise extinction may arrive sooner, not later.
  Like or Dislike: 30 1
  
  Reply
  - Dah Menang Semuaon Jul 12, 2024 at 8:03 am
    
    Lucky removing the subsidy
    Of the widely used diesel
    In commercial didn’t
    Trigger price increased yet
    (At least I don’t feel any)
    Well done!!
    Like or Dislike: 0 0
    
    Reply
Menteri formula bahlolon Jul 11, 2024 at 4:39 pm

2 x RM0.50 = 5 x RM0.20
Like or Dislike: 20 2

Reply
Sohaion Jul 11, 2024 at 5:00 pm

I don’t like surprises… especially from someone I elected.
Like or Dislike: 36 0

Reply
Ben Yapon Jul 11, 2024 at 5:05 pm

First time Rafizi live in Malaysia is it? whether last minute announcement or not, traders is going to increase price anyway. your formula isn’t working.
Like or Dislike: 43 0

Reply
198on Jul 11, 2024 at 6:48 pm

That’s why u don’t fit to be the minister who only sit inside office working in formula
Like or Dislike: 22 0

Reply
Ajibkor complaining satay price increaseon Jul 11, 2024 at 7:00 pm

Your Excellency Ben Yap
What formula Rafizi has ?
He forgot the recent Sg Bakap by elections.A total backlash.
Regime change is a frightening word.
PKR MP Pasir Gudang said,PMX has less than 3 years to follow Rishi Sunak’s footsteps.
It may even be half of that timeframe.
Like or Dislike: 13 1

Reply
Adon Jul 11, 2024 at 7:09 pm

Orang yang bahalol sahaja, sentiasa menganggap orang lain bahalol
Like or Dislike: 17 0

Reply
Eazyon Jul 11, 2024 at 7:19 pm

I have a fantastic formula too;
10 things spoken = 15 lies told.
:P
Like or Dislike: 27 0

Reply
Facebookon Jul 11, 2024 at 7:55 pm

where is the RM1.50 ron95 this sohai promised?
Like or Dislike: 23 1

Reply
ROTI CANAIon Jul 11, 2024 at 8:03 pm

You mabuk ke
Like or Dislike: 12 0

Reply
taisohaion Jul 11, 2024 at 8:26 pm

we dont want to listen to all this bullsh*t and excuses…
what we want to hear is leakages and corruption being tackled? fast action and not talk talk, many big snakes still roaming free…
Like or Dislike: 16 0

Reply
DonkeyKongon Jul 11, 2024 at 9:56 pm

Guys, let’s not focus so much hatred on the Formula King.
Let’s direct it to the more deserving culprits – his idiot constituents that voted him into power!
Like or Dislike: 13 2

Reply
Zvion Jul 12, 2024 at 1:32 am

there is no cure for stupidity.
Like or Dislike: 0 0

Reply
ThePolygonon Jul 12, 2024 at 8:22 am

I say why not just put in balloons in the background when doing the announcement.
Like or Dislike: 0 0

Reply

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Last minute announcement of subsidy rationalisation to prevent traders increasing price many times - Rafizi - paultan.org (2024)

Danny Tan