It is About Sharing

Knowledge is for sharing. Do not keep your knowledge to yourself alone. Let it grows. The more you share, the more you learn and in the end you become a better person.

Surah Yaasin Amazing Recitation

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Al-Fatihah

Wednesday, June 4, 2008

Ban of Subsidised Fuel on Foreign Vehicles

The government has announced that foreign vehicles are not allowed to buy subsidized petrol within as far as 50 kilometers from the Malaysia’s border with our neighboring country. Read here http://thestar.com.my/news/story.asp?file=/2008/5/27/nation/21370395&sec=nation.
I applaud such a move and 100% agree that subsidized petrol should only be enjoyed by the local and not the foreigners. Subsidy should be a privilege enjoyed solely by the citizens of Malaysia though there were complaints and major outcry among our traders near the border that such a move could affect their businesses. Read here http://thestar.com.my/news/story.asp?file=/2008/6/3/focus/21424882&sec=focus. Well, all these while, they (the traders) have benefited from the loose handling of the subsidized petrol and I do not see why they should make noise now. They should not be making profits at the expense of other fellow citizens. I say so because this mechanism is being used by the government to keep the fuel price as low as possible (though it is high), as the government will be able to have better control on the subsidy spent. If foreign vehicles are allowed to buy subsidized fuel, it means that more subsidized fuel is being consumed and the higher the subsidy the government has to bear. On the other hand, by not allowing foreign vehicles to buy subsidized fuel, it means the consumption of the same is lesser and the subsidy spent by the government is lower. At the end of the day, this should be able to help the government to keep the fuel price in Malaysia at a lower rate as compared to our neighboring country.

However, having said that, I wonder why the ban to buy subsidized fuel by foreign vehicles only extended as far as 50km from the border? To me, it should be applicable throughout the nation. The government should go back to the reasoning for having such a rule to ban foreign vehicles to buy subsidized fuel i.e. subsidized fuel is only meant for Malaysians. So, by allowing foreign vehicles to buy subsidized petrol at the stations located more than 50km from the border, for e.g. in KL, it means that subsidized petrol is not really exclusive for the Malaysians.

What I would suggest is that the ban for foreign cars to buy subsidized fuel is applicable throughout the nation and that they (foreign cars) can buy fuel at any station even within the 50km radius from the border but at the market price (without subsidy). This will definitely reduce or perhaps absolve the losses that may be suffered by the petrol station operators and the traders, as the foreign vehicles will just fill up their tanks at any station without the need to go back to their country or drive more than 50km from the border to fill in their tanks. This will not cause any problems or difficulties for the foreign vehicles to enter Malaysia.

Imagine what happen if the foreign vehicles run out of fuel? Most probably they will be stranded somewhere, as they might not be able to go as far as 50km or to go back to their country.

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