Jun 5, 2008, 9:21 GMT
Kuala Lumpur - Hundreds of people gathered at a street demonstration Thursday to protest against a massive 40 per cent hike in the price of gasoline in Malaysia.
The protest, which comprised opposition members, non-governmental organisations and worker unions, saw demonstrators in the northern Perak state holding up banners and posters demanding a review in the price increase which takes effect Thursday.
'The 40 per cent increase will definitely bring hardship to the people as the price of goods will go up,' said lawmaker M Kulasegaran.
Prime Minister Abdullah Ahmad Badawi announced Wednesday that the price of petrol would be raised to 2.70 ringgit (87 cents) a litre from 1.92 ringgit (61 cents) from Thursday.
Diesel prices rose by 1 ringgit to 2.50 ringgit (80 cents) per liter, a 67 per cent increase.
The move, which reduces the government's massive subsidy bill of at least 45 billion ringgit (14 billion dollars) this year, sparked a mad rush of drivers to fill up before midnight Wednesday at petrol stations nationwide.
Lim Kit Siang, head of the opposition Democratic Action Party, said the sudden announcement was 'unconscionable, unjustifiable and deplorable reflecting poorly on good governance in Malaysia.'
He warned that the move would affect lower-income groups.
'Equally of concern will be the deterioration of the public safety index, with the expected worsening of the crime situation which has already become an endemic problem causing Malaysians, tourists and investors to fear for their personal safety,' Lim said in his blog Thursday.
Abdullah also announced Wednesday that the government will give a yearly cash rebate of 625 ringgit (200 dollars) per year to owners of cars with an engine capacity of 2,000 cc or less to offset their burden from the massive hike.
The money will be distributed to owners through post offices.
However, the amount would do little to cushion the impact of the price hike which is expected to lead to a rapid increase in the price of food and services.
'The increase is too much, and in the end, it is the consumer who suffers,' said Doreen Chan, a housewife living in the capital Kuala Lumpur.
'When petrol prices go up, everything goes up. The annual rebate is an insult because it will hardly cover all the extra expenses,' she said.
The last time the government raised fuel prices was in February 2006, when Abdullah pledged to improve public transportation in order to reduce the usage of cars.
However, not much has come out of the promise, with critics saying that the public bus and train transportation system does not service many residential and corporate areas and was inaccessible to the handicapped and senior citizens.
'It's unfair to us to have to pay so much for petrol but not have any other viable alternatives,' said Joanne Koo, who queued at a petrol station for close to an hour late Wednesday to fill her tank before the price hike came into effect.
'The public transportation has not seen any improvement in the form of efficiency or reliability since the last hike,' she said.
Opposition leaders have said they are planning a mass demonstration in Kuala Lumpur on July 12 to demand that the price of gasoline be reverted back to Wednesday's price.
Despite the hike, gasoline prices in Malaysia remain lower than other Asian nations such as Singapore, Thailand and India.
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