Since the end of 2007, speculation had been around that the price of petrol would be increase after the General Election which was then expected to be before April 2008. True, the election was held on 8 March 2008 and speculation had been that the price of petrol would be increase on 1 April 2008, perhaps even earlier.
During the election campaign, the opposition parties such as DAP, PKR and PAS had been campaigning on the issue of oil prices, among others. De factor leader of PKR, Anwar Ibrahim even promised that if the opposition pact of DAP, PKR and PAS would win the election and form the Federal Government, the price of petrol would be reduced the next day (9 March). The BN on the other hand, had been trying to justify the increase since the 30 sen increase in April 2006 that the government has no control of the world oil prices and would not be able to sustain the subsidies.
So, on 8 March, Malaysians went to the polls, and nearly half of the overall voters, slightly less than half in Peninsula Malaysia, voted the opposition pact! That resulted in a political tsunami which sees the BN losing their 2/3 majority, losing 4 states - Kedah, Penang, Perak, Selangor, failing to capture Kelantan, and only won 1 out of 11 seats in the Federal Territory of Kuala Lumpur. The political tsunami is a result of many factors, the increase in oil prices in 2006 which in turn resulted in the increase of cost of living are among the many factors.
The Star columnist VK Chin wrote an analysis titled No petrol price hike in accordance with people’s wish. I would quote the first 6 paragraphs here:
“DATUK Seri Abdullah Ahmad Badawi said last week there would be no increase in the petrol price, since this was the wish of the people. The Prime Minister said his administration had accepted and recognised the strong message of voters as reflected in the result of the 2008 general election.
Prices of petroleum products, such as petrol, diesel and natural gas have always been associated with rising costs of consumers goods and, hence, an increase in the cost of living.
Pak Lah could have given this assurance during the election campaign but did not because the cost of fuel is dependent on the global price of crude oil, which is beyond the control of any government.
It would have been difficult to give such an undertaking without first taking into consideration what petroleum subsidies could do to the economy.
He and his colleagues therefore preferred not to make promises that they might not be able to keep, especially if such a decision could damage the nation’s financial position in the long term.
Since voters felt so strongly about this issue, the Government had to accept the will of the people. But this is only one part of the story since profiteering by unscrupulous firms and traders must also be taken into account.”
So, it takes a very strong message from the voters to halt the decision to increase the price of petrol and other petroleum products. And if the government can sustain without increasing the petrol price, why didn’t they listen to the people 2 years ago when many had voiced out against the 30 sen increase? Protests were held at KLCC 2 years ago against the petrol price hike, and the authorities responded with water cannons and tear gases!
The opposition parties had explained that the government can sustain even if the petrol price is reduced, but the government is in denial! While everyone is happy now at least, the petrol price will not be increased for now, we do not know how long will this last. It will be a bonus if the government takes the people’s message in the elections more seriously, by reducing the price of petrol by 30 sen per liter!
