Tuesday, June 3, 2008

Fuel Price to Go UP?

The government will announce new fuel subsidy on Wednesday..... Here

Will there be an increase? We all know that crude oil has surge past USD130/barrel of late. While the last increase, crude was in the region of USD60-70/barrel.

It was also reported that the government will be paying RM56billion in fuel subsidy this year. While all the steps that the government has taken to date DID NOT really address the issue of subsidies going to the right people but merely causing inconvenience to alot of people.

While it is right to say that Malaysians buying Singaporean cars will also fall under the category of cars not allowed subsidized fuel, but I feel the ruling to prevent these flers as well as genuine foreigners from pumping subsidized fuel will result in a "side" business coming out of this. This government is not addressing the issue! They are merely creating more roadblocks and generating many more undesirable business elements. I am sure, many petrol pump operators will then turn to be illegal pump operators storing fuel by the drums off a location and sell to foreigners at a higher price reaping higher profits. What mechanism are they going to implement to ensure that Malaysians enjoy the fruits of their land??

What framework will it be?? Creating laws to stop people from selling will create new selling avenues! There is still the mykad to control but...... maybe they have in mind the millions under project IC?

1 comment:

cili said...

Why can't they just cut all this bullshit and look into things that require serious attention like fighting crime instead of checking for foreigner cars pumping petrol.