Malaysia seeks to ease fuel unrest

Malaysian Prime Minister Abdullah Ahmad Badawi today said the administration will announce more measures to ease the burden of…

Malaysian Prime Minister Abdullah Ahmad Badawi today said the administration will announce more measures to ease the burden of rising fuel costs on consumers.

Mr Abdullah, already fighting a challenge to his leadership following a poor showing in a general election in March, said the recent fuel hike decision was a difficult one to make, but that there had not been a choice.

Petrol prices were increased by 41 per cent and diesel 63 per cent in line with a global surge in oil prices, a measure which would drive inflation to a 10-year high of 4.2 per cent in 2008.

"In all honesty, it was a difficult and agonizing decision to make. Many times, we have been tempted to walk away from such a difficult decision," Mr Abdullah said.

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He added that the administration planned to announce more measures to lessen the pain for ordinary people after a meeting of the cabinet's anti-inflation unit.

State media reported last week that the government planned measures such as widening the social safety net for the poor, increasing the number of price-controlled items and improving public transport.

Many consumers grumble that they have to face a steep rise in prices despite the fact that Malaysia, Asia's largest net oil exporter, earns $76.8 million (€48 million) a year in revenue for every $1 rise in crude prices.