Let's Celebrate the Fuel Price Increase Day

I want to write about the price increase...but I just do not know where to start because there are so many issues in my head. The excuse behind the increase, the real reason behind it, the inconsistent act and statement made by the government, the bluff, etc..etc..I am so frustrated, mad and many more feelings of that sort with the government. Simply because such a move by the government who cares about the people will affect almost everything.

The government announced that they will sort of absorbing the hardship that the middle class citizens are suffering by paying RM625 on annual basis. The question is, how long does the government will continue to make the payment? Whether the amount of RM625 is fixed or adjustable according to the fuel price and the subsidised amount? The government also announced they will be reveiwing the fuel price on monthly basis. Click here http://www.thestar.com.my/news/story.asp?file=/2008/6/5/nation/21461533&sec=nation. So, are the going to review the RM625 on monthly basis too? Some might say, the government won't do that, as it is cumbersome for them to do that. Let me tell you something. Just a few days ago, the government announced the ban on foreign vehicles from buying petrol near the border but in today's newspaper, Shahrir Samad annouced that the government has uplifted the ban. Click here http://thestar.com.my/news/story.asp?file=/2008/6/5/nation/21463370&sec=nation. See my point? Our government nowadays, they do not have proper plan. They do whatever they think at that time and that same decision may be changed as and when they like. Even few days ago, Shahrir even said the increase will take effect in August but suddenly things changed it took effect immediately. Click here http://thestar.com.my/news/story.asp?file=/2008/6/4/nation/21444347&sec=nation. So, my point is, the government nowadays can do whatever they like just like that. They do not have to think far. Do not take whatever annoucement made by the government at the face value and as good because they are able make a u-turn at any time they wish.

So, my dear friends out there, let us remember today, the 5th June 2008 as the Fuel Price Increase Day and if the government is to increase the fuel price in the future, they can do it on its anniversary. Put it in your calendar.

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.