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Fuel Subsidy:The Malaysian Option.

Kuala Lumpur:Malaysia:-

      The Malaysian Government is looking at various options to deal with the ever-rising fuel prices.

       Everyone knew that our fuel price is supported by huge amount of subsidies. Previously, this seems to be the only reason how we can shield our population from the heat of inflation.

       However, oil price has been continuously rising and there is no sign of it slowing down. The amount of subsidies this government have footed is now too glaring to our eyes.

       The word is, enough is enough. The government cannot afford to pay more for its oil. The public have to share some of the burden.

     The first option announced was the ban on fuel sales to foreign vehicles at all border stations. The area designated would be about fifty kilometers from all its borders.

     The logic behind such policy is that foreigners have been abusing our subsidy system for so long. Singaporean and Thai-registered vehcles was famous for filling up their tanks at Malaysian fuel stations. This was because our fuel price was the cheapest if compared to our neighbouring countries namely Singapore and Thailand.

     The second action would be to implement a pricing system that would be in favour of those who owned small cars [or those in the lowest income-bracket]. Their countrymen who drove around in foreign-matked fuel-guzzlers would have to pay more since they are supposedly more well-off than ordinary Malaysians. 

     As for our transportation industry a new system would be in place so that they can remain in business competetively. Buses and taxis should be able to prove that they are not being used by certain parties to abuse the system.

     At the same time members of the Malaysian cabinet have repeated that subsidies are not permanent. Sooner or later the burden would have to be shared by the people.

John:
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