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Protest in India and Malaysia as fuel prices raised
(Agencies)
Updated: 2008-06-05 16:26 The price increases won't erase that deficit, but Deora told reporters that officials had to compromise to protect "the interest of the common man as well as ensuring the financial health of the public-sector oil marketing companies." In India, which imports nearly three-quarters of its oil needs, gasoline prices were being raised 5 rupees (US$0.13) a liter and diesel prices 3 rupees (US$0.08) a liter at midnight Wednesday, he said. That lifts gasoline prices in New Delhi to 50 rupees (US$1.20) a liter, or US$4.56 a gallon. Fuel prices vary between states, which also impose their own taxes. India's powerful communist parties has called for a week of protests across the country, saying duties should be further cut instead of raising retail prices. In Malaysia, subsidies have kept fuel prices among the lowest in Southeast Asia. But the government said it could not afford to continue funding the subsidies, which are expected to cost the treasury more than 45 billion ringgit (US$14 billion) this year. Abdullah said the price of gasoline was going up from 1.92 ringgit (US$0.61) a liter to 2.70 ringgit (US$0.87) a liter (US$3.31 a gallon) from Thursday. Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad also said the government would give a yearly cash rebate to owners of small and medium sized cars to offset the burden of the huge hike. Associated Press reporter Sean Yoong in Putrajaya, Malaysia, contributed to this story. |
