Fuel Price Increase Inevitable But Should Have Been Done Gradually - Dr M - Bernama

TELUK INTAN, June 14 (Bernama) -- Former Prime Minister Tun Dr Mahathir Mohamad said Saturday the fuel subsidy reduction was inevitable due to the rising crude oil prices in the global market.

He said the subsidy reduction was something that the government had to do as the price of crude oil reached US$138 per barrel as compared to US$30 per barrel during his time as prime minister.

"Although inevitable, we can reduce the burden borne by the people by increasing the fuel prices gradually.

"At the same time we must also find ways to enhance the people's income. This is something that we can do," he said at a dialogue after delivering a talk on the future of the Malays in Malaysia organised by Pekembar, a non-governmental organisation, here.

Dr Mahathir was answering a question from a participant from the Teluk Intan 4B Youth Movement on the measures he would have taken to lighten the people's burden if he was to return as prime minister. "Toll rates reduction would mean an increase in the toll subsidy. But why should we reduce the fuel subsidy and increase the toll subsidy?

"This should therefore be studied carefully as we don't to see a 'left pocket in, right pocket out' situation," he said.

[More at http://www.bernama.com.my/bernama/v3/news.php?id=339544]