PETALING JAYA: A DAP Youth leader has dismissed Bersama’s proposal to float RON95 petrol prices according to market rates, calling it unrealistic and warning that it could increase the cost of living.
The wing's deputy chief, Raja Ahmad Iskandar Fareez, said Bersama spokesman Sum Dek Joe’s proposal to float prices once crude oil falls below US$70 a barrel failed to account for volatility in the global oil market.
"The problem is that oil markets don't move to anyone's timetable, least of all with conflict spreading in the Middle East, attacks in the Gulf and geopolitical risk running at an all-time high," he said in a statement.
"What if crude oil prices never fall below US$70 a barrel? Will Bersama keep waiting, or float prices now and force working families to pay RM4.32 a litre?"
Sum had acknowledged arguments by some that removing fuel subsidies could trigger social instability, but said this did not mean the government should remain idle.
He proposed floating petrol prices once global crude oil prices fall below US$70 a barrel, alongside cash assistance for 80% of households, including monthly payments for the first three months.
Raja Ahmad warned that a sharp increase in RON95 prices could trigger a chain reaction across the economy, raising costs for transport, logistics, food delivery and daily necessities, among others.
He also asked whether Bersama’s proposed cash assistance would be enough to offset the higher costs.
"How does Bersama intend to prevent these costs from being passed on to consumers and ensure that inflation remains under control?" he asked.
Raja Ahmad said the government’s BUDI95 and BUDI Diesel schemes were a better approach, allowing the adjustment of subsidy levels as market conditions change while protecting ordinary consumers.
He said the schemes also helped reduce subsidy leakages to commercial syndicates, cross-border smugglers and non-citizens.
Building a safe and reliable public transport network, including facilities for first- and last-mile connectivity, would take years, he added
"Until that network is in place, asking Malaysians to pay RM4.32 at the pump would hit hardest the households least able to absorb it," Raja Ahmad said.