QUICK TAKE: When fuel prices go down and prices of consumer goods and services don’t, the government is quick to point the finger at “errant traders and businesses” profiteering at the expense of consumers. 

The business community, however, says that it is electricity and gas that forms the bulk of their costs. 

The government has now decided to reduce electricity tariffs effective March 1 by about 5.8 per cent, which should effectively bring the prices of consumer goods down. 

The catch however is, it is only for a period of four months. 

An irate Federation of Malaysian Consumers Associations (Fomca) president Datuk Dr Marimuthu Nadason finds this ridiculous. 

“We want a 10 per cent reduction throughout 2015 because a flimsy 5.8 per cent reduction for just four months will not make any impact as most businesses will need a period of time to adjust to the new tariffs and to readjust their cost of doing business to see how much they can reduce the retail prices of their goods. 

“To finalise something like that would take more than a month and by the time this cost reduction is passed down to consumers, they will only be able to enjoy cheaper goods and services for about a month.

“Is this what the government wants?” he asked. 

Marimuthu told Theantdaily that Fomca is going to embark on an online signature drive to pressure the government into reducing tariffs by 10 per cent throughout 2015. 

Shahrizat

“The public pressure has to be there for the government to see how serious an issue this is. 

“After all, this is what the people want

us to do,” said Marimuthu, in an apparent reference to Wanita Umno chief Datuk Seri Shahrizat Abdul Jalil. 

Shahrizat had reportedly said consumer bodies now lack the bite they used to have in the past when they were feared by errant traders, saying they must re-establish this to tackle issues that affect consumers such as unscrupulous traders who refuse to bring down prices despite the decline in oil prices. 

Marimuthu had earlier responded to Shahrizat’s attack by saying he might now have to change his “moderate” stand to “obey” Shahrizat. 

He said that Fomca was also currently conducting a study on the impact of electricity tariffs on prices of consumer goods and services. 

“Electricity tariffs affect prices in more ways than the prices of oil do so we are targeting that. 

The survey results will be out in a month so we will be able to support our argument with data,” he said. 

Fomca aims to secure one million signatures for their signature drive. 

“In the past, getting one million signatures was no problem. We expect to exceed the number for this signature drive,” said Marimuthu. 

On Feb 11, Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili announced the government’s decision to reduce electricity tariffs beginning March 1, which will be valid until June 30. 

Ongkili

Ongkili had reportedly said that with the new tariff, consumers would be able to save between RM13.50 and RM45 on their monthly bills. 

He said the move would see a new tariff reduction of 2.25 sen per kWh in the peninsular, adding that this new rate would only affect those using more than 300 kWh a month. 

Marimuthu is right. Why such a mediocre amount for such a short period? 

Is it all right for the government to point fingers at businesses, while they themselves don’t practice what they preach? 

After all, aren’t the public consumers of services and goods from businesses? 

And isn’t TNB a business entity that makes a profit? 

Whatever the arguments may be, the lower prices of fuel does make the cost of producing electricity cheaper. 

Deputy Minister of Energy, Green Technology and Water Datuk Seri Mahdzir Khalid had reportedly said the fuel price drop would not have a major implication on the generation of electricity because 55 per cent of power plants in Peninsular Malaysia were using natural gas and liquefied natural gas (LNG). 

Well, the price of natural gas has also dropped. 

So why is it all right for TNB to make a bigger profit but not businesses? 

If the government is serious about reducing prices for consumers, it should not be by such trivial measures.

- See more at: The Ant Daily