Mier sees rise in petrol price (STAR)

The Malaysian Institute of Economic Research (Mier) says there is a possibility of a 30 to 40 sen increase in the price of petrol after the general elections due to the rising cost of subsidising fuel.
So far this year, Petroliam Nasional Bhd had to cough up about RM35bil in petroleum and gas subsidies.
The Government last raised prices at the pump in early 2006, when it was raised by 30 sen to RM1.92 per litre, at a time when crude oil was trading at US$60 a barrel. The crude oil price surpassed US$99 per barrel in overnight electronic trading on the Nymex recently.
Mier executive director Professor Datuk Dr Mohamed Ariff Abdul Kareem said the Government should cut the subsidies sooner rather than later due to the high cost.
“With\nhigher revenue, the Government may not pass on the entire burden,” he\nsaid, adding that the US dollar was expected to hit RM3 or lower next year,\npartly due to the diversification of foreign exchange reserves by China and the Middle East.
Mier had estimated this year’s GDP growth at 5.7% and for 2008, 5.4%.
Ariff said the targeted growth rate of 5.8% during the Ninth Malaysia Plan implementation period was a realistic target compared with the potential growth rate of 6.5% for the country.