25 Sept 2007

KUALA LUMPUR: The Government has yet to decide whether to raise gas prices. 

The relevant agencies and Economic Planning Unit are working on the details for the Cabinet’s consideration. 

Prime Minister Datuk Seri Abdullah Ahmad Badawi, who was asked whether the Cabinet would make a decision on raising gas prices by this week, said the Government needed time to study the matter. “We also need to look into its impact and implications on the people and industries,” he told reporters after chairing the Umno Supreme Council meeting.

Last week, Petronas said it was pushing for an increase in gas prices as it has been subsidising nearly to RM50bil in the last 10 years for gas.  

Abdullah, who is Umno president, said gas prices in Malaysia was currently 70% lower compared to other countries. 

“The industries are enjoying such good subsidy and cheap prices for gas. But industries in other countries still exist with high gas prices,” he said. 

“Why can’t we be competitive if gas prices were increased?”