Najib says...

"Don't expect pump prices to be constantly reduced"

I actually agree with him. Oil has hit a critical level of $50 a barrel, if it holds I think it will go down further but if it doesn't hold, it may just go back up and hover between $50 to $70. Further, our DPM said:-

“If we keep cutting the pump prices whenever crude oil prices fall then we will have to also increase the pump prices every time there is an increase at the international market."

Isn't that obvious? I don't know how else to put it simpler. It's the market, it's how currency, commdities, stock prices... are priced. They change every day.

“We cannot afford this kind of volatility. The people may not be able to cope with these sudden changes."

The last time price went from rm2 to rm2.6 in one day. I would call such big jump 'sudden changes' wouldn't you? These are extraodinary times.

“Oil prices cannot stay so low for long. Sooner or later it will increase. If we cut the prices too much, we will have to increase it even more and this will affect the people,” said Najib to Malaysian newsmen after attending Friday prayers at the Islamic centre here.

Why would u need to increase it EVEN MORE? Unless it peaks above $120 but that's quite unlikely.

When price went $100 to $140/barrel, our price went from rm2 to rm2.60.
When price went from $140/barrel to less than $50/barrel we went from rm2.60 to rm1.90?

Bring it down now and match it later. Is that so difficult? Right there's 'taxes'.

"Asked if the Government would allow the pump prices to float and be determined by the open market, Najib, who is the Finance Minister, said most petrol pump dealers would find it difficult to cope with such daily or weekly fluctuation of prices."

Well, then they shouldn't be in business. Most pump dealers have to cope with fluctuations like these in the world, how do they do it? Generally that's why you need to plan ahead, balance the cash flow and keep cost low. Something our government could learn really.

“If oil is too cheap we will not work very hard to seek alternative sources of fuel,” he added.

Ok, since when have we been working hard at seeking alternative sources of fuel? We have SURIA 1000 but that's hardly 'working hard'. Do we have wind farm? wave farm? Lowered taxes on fuel efficient cars like hybrid, electric, air, diesel, NPG cars? Solar cities? (and while nations are moving away from nuclear power... we seemed to be looking at it without having bakun dam finished. Why do I smell another billion dollars project?)

When oil was high, it was expensive to do so. Now oil is cheap we say we will not work very hard. So when's a good time?