Malaysian petrol prices could go up by 15 cents if government approves proposal

Petrol

Petrol prices to be increased 15 sen in June-Dec 2010, then 10 sen hikes every six months between Jan 2011-Dec 2012 and by a lesser amount in following years.

Petrol prices seen at

2011 - RM2.16
2012 - RM2.20
2013 - RM2.34
2014 - RM2.52
2015 - RM2.60

The forecast for crude oil in 2011 is US$73.06 per barrel and for 2013-2015 in the region of US$79.41-94.52.

Tolls

Renegotiation with PLUS highways in 2010 and with LDP Highways by 2013.

Propose that all concession agreements would proceed without subsidies, resulting in a toll hike of between 10-67 percent for 2010.

Gas

Gas price is increased by a fixed rate of RM3/MMBTU every six months from initial increase for power sector and non-power
sector.

Gas price increase of RM3/MMBTU every six months corresponds to an increase in electricity tariff of 1.6 sen/kWh every six months.

Electricity tariff for lifeline consumers (in 2010, less than 200 kWh) would not be increased. About 56 percent of households will not be affected in 2010.

Consumers with a monthly bill of 20 ringgit and below will continue to get free electricity until Dec 2010.

Strategic industries will be protected initially.

Inflationary impact

* Estimated impact on inflation:

- A 5 percent increase in petrol prices would result in a 0.4 percentaage points rise in the consumer price index.

- A 10 percent increase would cause the CPI to go up by 0.82 percentage points. Fuel represents 7.7 percent of the CPI basket.

Total savings

* In 2010, government will save about RM3 billion. In 2011, RM14 billion, RM21 billion in 2012, RM29.5 billion in 2013 and RM35 billion in 2014.