SHAH ALAM, 3 Oct: The Umno-BN government should not increase the price of oil when the world market price is currently down.

The PKR Consumerism Bureau Chairman, Yahya Shari, said that he rejected the grounds that the rationalisation of the subsidy was done to ensure that the country’s financial position remains strong.

“The policy to rationalise government subsidy is not to accommodate the price of oil for the convenience of the people, but to conceal old trading losses.

“The Umno-BN government is already burdened with excessive debt and I expect that the country traded oil with future contacts that are not profitable,” said Yahya, quoted from Keadilan Daily,

He said that the increase in fuel prices will affect all sectors of the economy and result in the prices of other goods to experience an increase when transportation costs increase.

“While the increase is only 10 cents or 20 cents it will still have an impact on the people in managing their daily lives,” he said.

On October 1, 2014, the international media reported that the world oil prices have declined with the United States’ major contract falling by 3.6 percent due to lower and slow demand.

World oil prices are now at USD90.73 a barrel, far lower compared to the price in July which was at USD103 per barrel.

NS