Answer:

No. The move taken by the Government to raise the price of fuel is in line with ‘Fiqhiyyah’ method, which states:

“The lesser of two evils should be perpetrated to avoid the greater.”

Right now, fuel consumption in Malaysia is on the rise, amounting to 500,000 barrels daily as compared to the production of 750,000 barrels daily. Hence, the Government is anticipating that the fuel reserve in the country will run dry by 2010.

To prevent the national oil sources from running dry so quickly, the price of fuel must be increased. (Domestic Trade and Consumer Affairs Ministry’s Facts on Petroleum Product Price Hikes, pg 6-7)

There are two weaknesses in this action. Firstly, it will burden the people. Secondly, the national oil sources will run dry.

In comparison, it is clear that if the national oil sources were to run dry, it will bring about greater impact to the country and the people. So in, choosing the lesser of two evils, the government has to raise the fuel price.

Answer:

Not true. After having raised the price of fuel, the Government has taken several actions to reduce the burdening impact of the price hikes on the low-income group, including:

1. Giving diesel subsidy of RM1.00 per litre to fishermen nationwide.  (Domestic Trade and Consumer Affairs Ministry’s Facts on Petroleum Product Price Hikes, pg 23.)

2. Giving higher petrol subsidy to offshore fishermen. They can buy petrol at a price of RM1.00 per litre, instead of paying       the retail price of RM1.92 per litre. About 15,000 offshore fishermen registered with the Fisheries Development Authority (LKIM) will be enjoying the price by June (Utusan Malaysia, 16th March 2006).

3. Giving diesel subsidy to passenger boat operators in Sabah, Sarawak and Hulu Tembeling. They can buy petrol at a price of RM1.20 per litre, instead of paying the retail price of RM1.43 per litre. (Utusan Malaysia, 16th March 2006)

Answer:

Not true. This is because whatever saved from the reduction of subsidy will be returned to the people in the form of a better and improved public transportation system.

Besides, the subsidy policy also has its flaws, including:

1. The subsidy will cause manipulation of price and smuggling of diesel and petrol.  (Domestic Trade and Consumer Affairs Ministry’s Facts on Petroleum Product Price Hikes, pg 14.)

2. It can also cause the subsidized diesel and petrol to be obtained by undeserving parties. For example, in the year 2002,     a total of 326 million litres of diesel were supplied to fishermen, which enabled them to catch about 1.29 million tonnes     of fish. However, in 2005, when the diesel supply was increased to 1.37 billion litres, the catch dropped to only 1.2 million tones. This clearly showed that the subsidized fuel was sold to the undeserving parties. (Interview with DPM, 1st     March, 2006).

Yes, people are burdened with the fuel price hikes, but the Government has no intention to do so. The price of fuel just had to be increased.

Nevertheless, the Government has never left the people to face the price hikes all by themselves. It has taken several actions to ease the people’s burden.

Furthermore, we cannot look at the price hikes only from the negative point of view. It should be viewed positively as stated in the Quran:

“”And We will surely test you with something of fear and hunger and a loss of wealth and lives and fruits, but give good tidings to the patient.” – (Al-Baqarah : 155)

In facing the price hikes, it is also the best opportunity for us to be stronger in facing life challenges as an Arabic proverb goes:  “Nothing lasts forever”.