Thursday, January 7, 2010

New Fuel Subsidies System

Fuel subsidies system is changed again. Minister of Trade and Consumerism has announced that the new system is enforced begin on 1st of May.

Under the new system, foreigners will not be subsidised and they will pay more than Malaysians. For example, the price of RON95 is now RM1.80, and its original price is RM2.10 currently. If the price is going to be persistent until May, foreigners are going to pay RM2.10 instead of RM1.80. However, Malaysians can still enjoy the subsidises from the Government. But, there are some exceptions. Malaysians with driving higher performances cars will be paying the higher price too. So, Malaysians may need to produce their Malaysian's Identity Card in order to get subsidised.

The reason why the owner's of higher performances cars need to pay more is because they are able to buy expensive car, they are able to pay for the fuel too. They are not eligible to get subsidised. In my opinion, it's not a bad idea. First, this helps government to save money. Second, richer men pay more, poorer men spend less, it's reasonable.

As we know, government uses people's money(claiming from the taxes) to pay the subsidisation of the fuel. So, government collects the taxes from the people, and spends it to subsidise the poorer community, it's how the money circulate to help the poor. This is one of the objectives of the DEB, isn't it? However, I still hope the money which is not spent on subsidising the rich one could be well-planned and well-paid, not to be wasted, but to develop the country well.

The international petroleum price is increasing recently since the market of America is growing up again. It's now #82.80. From now until May, there are four months to go. How will the petroleum price showing its state? It's really unpredictable. Today we see America is recovering its market, what will happen tomorrow? Dubai just having he opening ceremony of the Khalifah Dubai Tower, which is the highest man-made building in the world, height 828m. But, is that a good sign or a bad sign of today's international market? Everyone is paying attention on it...

However, no matter what will be next, the price of the fuel still depends on how our government is going to control it. Subsidise? Or not? Yes? People feel happy. No? Inflation...

No comments:

Post a Comment