Thursday, May 5, 2005

Abolish fuel subsidies

Residents of Malaysia are dead lucky. They enjoy dead cheap fuel and yet complain whenever the government cuts the subsidies. In fact the demand for ultra cheap fuel is so great that there is a booming trade in smuggled crude oil.

And this despite the fact that all around the World fuel prices are increasing. Fossil fuel isn't a renewable energy source you know. Anybody with a little bit of economic knowledge will know that prices will have to increase as demand grows and supplies dip.

I am still shock that Malaysia residents are still able to enjoy subsidised fuel. In such a polluted world (especially now with the increased car usage in China) I would have thought that instead of subsidies, they should be taxing fuel and use the money saved (est. ranges from MYR5 billion to MYR10 billion) to improve the mismanaged public transport system and other public services such as health and education.

Sell those useless SUVs (Urban 4x4s aka Chelsea tractors) and get a Smart instead.

News source: The Star, Bernama

Why subsidies must end


Btw, congrats to Liverpool on their drubbing over Chelski. Money can't buy success you know and the best team won this time.

1 comment:

Kimberly Low said...

the thing is we cant see where all the money saved from ridding off subsidies goes. public transportation still sucks, irrelevant mega projects are still abundant and cars are still painfully expensive. the least they can do is let us enjoy the cheap fuel.