Sunday, August 24, 2008

Pak Lah Does It Again

Our PM had earlier said that there would be a (downward) revision to the pump price of fuel in September, and that an announcement would be made on 31 August. Then on 22 Aug - 10 days earlier than expected - he announced a reduction in fuel prices. This is, of course, not the first time that the PM did something contrary to what he said. But being the PM, he has the prerogative to speak and act in a manner he deems fit.

As expected, the government refuted claims that the earlier-than-expected move was linked to the Permatang Pauh by-election. More need not be said and you be the judge.

Interestingly, the price reduction coincided with the Statistics Department announcing that our country's inflation rate for July 2008 had risen to 8.5% from a year ago, and up 1.1% from June. As a consumer, what's more important is whether cost of living will come down in tandem with petrol price reduction. It is a long shot to see a decline in food prices and other consumer items.

Read 'Cut comes 10 days early' and 'DAP questions timing of petrol price reduction' (The Star).

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