Malaysia is among the top 20 cheapest petrol in the world
(LSS) – There is this person that I know who owns 30 properties which I wrote before. He was an MCA supporter who turned against the govt because her daughter could not get a govt scholarship as her father’s income level was too high.
Recently, whenever petrol prices increase, he will message me to complain but keeps quiet when prices fall.
On his own admission, he buys at least 3 to 4 bottles of whisky at the pubs every week – each costing RM400 to RM500 per bottle. Recently he has also taken a liking to frequenting exclusive wine places.
Despite spending thousands on alchohol every week, when petrol prices increases he complains bitterly.
For example this week, he says Najib menyusahkan rakyat as he has to pay RM3.60 extra this week to pump a full tank of 60 liters for his Mercedes.
Recently, I gave him proof that Malaysia is in the list of the top 20 cheapest petrol in the world.
I also showed him the table of countries which have cheaper petrol than Malaysia – most of which are countries that produces way more oil than Malaysia and also showed him evidence that those countries are also implementing GST and are also increasing their petrol prices to market prices like Malaysia
I then asked him a few times which country do you want Malaysia to have cheaper petrol than. Every time, he will keep quiet and then ask why I recycle this question.
Hello friend, you refuse to answer that is why I ask again.
I also showed him that opposition also no longer wants to give blanket subsidies for petrol and only promises in their alternative budget 2018 to give only a 20sen rebate off the floating market prices for motorcycles and cars below 1,000cc – meaning my friend’s Mercedes will not qualify.
His answer is that the opposition is useless too.
I am of the opinion that it is because of people like this friend of mine that Malaysia should never revert back to blanket subsidies – ever again.
In fact, if I had the power I will make sure this person is taxed heavily instead.
Like the rest of the world, Malaysians will have to get used to paying market prices that fluctuates on a daily or weekly basis for petrol.
Although Malaysia no longer subsidises petrol, but unlike the majority of the country, we do not tax it which is why Malaysia is among the top 20 cheapest petrol in the world. (the average price for petrol around the world is RM4.57 per liter).
Many are complaining that our local petrol prices have increased but this is due to oil prices hitting a 2 year high recently to the US$62 per barrel level.
It was not too long ago in early 2016 that we enjoyed the cheapest petrol in decades when our petrol prices dropped to RM1.60 per liter for many months when global oil prices plunged below US$30.
There is little point blaming Najib for petrol price increase (or praising him when petrol prices reduce) since he does not control the global oil market.
However, there is no denying that more expensive petrol will burden some people more than others.
Going back to blanket subsidies for petrol is a big “No” due to the huge cost as well as the wastage, leakages and inefficiency involved – which is why more and more countries are cutting blanket subsidies.
(I also do not want to benefit certain Whisky-drinking friends who drives Mercedes who complains bitterly that they now have to pay RM3.60 per liter extra this week to pump a full tank for their Mercedes)
In fact, even Pakatan has now U-turned and acknowledged this. They no longer wants to give blanket subsidies for petrol and only promises in their alternative budget 2018 to give only a 20sen rebate off the floating market prices for motorcycles and cars below 1,000cc
However, there will be certain segments of the population who will be impacted by higher petrol prices.
*Finance Minister II Johari’s revealed yesterday that the govt may increase the amount and frequency BR1M payments should petrol prices rise above a certain level but such payments will stop when petrol price falls below the level.*
I find this proposal very interesting as it does not amount to blanket subsidies while ensuring the lower-income groups are not impacted by higher petrol prices.
In fact, if this scheme is done right then the lower income group may gain even more compared to the increase amounts they have to pay for petrol
When global oil prices increase (and petrol prices increase), our govt also benefits with higher revenue – thus it is only fair that such increase revenue is shared back with the lower income groups.
What is more fair than that?
