Float system profits oil companies at the expense of the people, says Rafizi


Weren’t dealers complaining recently that they were not making enough money?

Dateline 2014-11-24, The Malaysian Insider:

The government’s move to scrap the fuel subsidy and base the prices of RON95 petrol and diesel on a managed float system starting next month means that the rakyat will have to bear the extra burden of guaranteeing the profits of oil companies and petrol dealers, a PKR lawmaker said today.

Party secretary-general Rafizi Ramli said this was because under Malaysia’s version of the managed float system, about 30 sen was padded into the per litre cost of petrol and diesel, which was for profits guaranteed to oil and gas companies and petrol dealers.

This covers their costs of transportation, distribution, marketing and operations and also protects them from global price fluctuations.

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