Recently, the Malaysian government has announced cuts to fuel (petrol) subsidies, hoping that the move will close the country’s fiscal deficits.
Therefore, many citizen are complaining about the fuel price hike, feeling that good and services will become more expensive.
Actually, our subsidy system benefits everyone, including the higher income group and foreigners. The government is subsiding RM0.83 for every litre of RON95 gasoline and RM1 for every litre of diesel.
Rich with big car get more subsidy than the middle class and poor.
My best friend told me that there are many fuel smuggling cases at the Malaysia-Thailand border. Some of the fisherman were involved in bunker activities and were planning to sell the fuel to other countries’ ship.
Cheaper petrol and diesel prices, compared to our neighbors, is the main cause for the lucrative smuggling of the commodity out of Malaysia.
In the short term, we are subsiding whole South-East Asia.
So, MisterLeaf agreed that our country need to move to a more targeted subsidy system that caters for the vulnerable groups or restructured the fuel subsidy system.
Maybe government can refer the fuel subsidy scheme in Year 2008 to minimize the impact of fuel price hike, where people with cars can claims cash rebate over Pos office counter in Malaysia.
What say you?