Bersama’s RON95 proposal unrealistic, says DAP Youth leader

DAP Youth deputy chief Raja Ahmad Iskandar Fareez has criticized Bersama's plan to allow RON95 petrol prices to fluctuate based on global crude oil prices. Fareez argues that this proposal is impractical and could lead to higher living costs. He points out that oil prices are influenced by numerous unpredictable factors, such as conflicts in the Middle East and geopolitical tensions.

Fareez questions whether Bersama would continue to wait for oil prices to drop below US$70 a barrel or if they would implement price adjustments prematurely, potentially burdening working families with a price increase of RM4.32 per liter. He also acknowledges concerns about social instability that could arise from removing fuel subsidies.

Fareez proposes a different solution: floating petrol prices once global crude oil prices fall below US$70 a barrel, coupled with financial support for 80% of households, including monthly payouts for the first three months. Fareez warns that a significant rise in RON95 prices could have ripple effects across various sectors of the economy, increasing expenses for transport, logistics, food delivery, and daily essentials.

He cautions that the government should consider how the proposed cash assistance would suffice to offset these higher costs and prevent them from being passed on to consumers, thereby maintaining control over inflation. Fareez advocates for the government's existing BUDI95 and BUDI Diesel schemes, which allow for adjusting subsidy levels based on market conditions while shielding regular consumers from excessive financial strain.

He also emphasizes the importance of building a dependable public transport network, acknowledging that such a project would take years to complete. In the meantime, implementing a fuel price increase of RM4.32 at the pump would disproportionately affect households with the least ability to absorb such a blow.