As you are reading this, the Cabinet Commitee on Inflation meeting regarding our country’s fuel subsidy system has already been running for about more than half an hour. The results of this meeting will be announced possibly later today and be implemented starting from tomorrow, according to the PM. There has been a few updated bits and piece of info released by the media today, hinting at what the final restructured fuel subsidy plan will be. Here is what we know at the moment:
- The government is currently studying two methods of delivering subsidies – based on cash income and based on quota. What has been repeated many times in the past is that those who can afford to pay market rates should pay for them so I think we can assume that subsidies based on cash income is a go, but the question here is whether those who qualify for subsidies will have a quota set on how much subsidies they can enjoy. I think quotas make sense to prevent someone with subsidies to profit from selling subsidised fuel on the black market to those who do not qualify for subsidies. Someone with low income should also get just enough subsidies for the bare necessities of commuting, this is to discourage wastage of subsidised fuel.
- The PM wishes for the new subsidy structure to be implemented from tomorrow onwards, but I think we can realistically see it some of it implemented tomorrow and the rest in stages leading towards a full implementation in August.
- There will also be no controlled prices for fuel in August 2008 onwards. This means that the market price will be determined by the fuel companies. This could also lead to different stations offering different prices for fuel.
- We still do not know whether fuel tax will be added to the market price for petrol As a higher market price is already a big shocker for most people, what I think is that the initial market price will not have fuel tax, but fuel tax may be added later.
- The ban at the northern border preventing foreign cars from filling up is now in effect, with the Singaporean border ban to be applied later. This ban only affects cars. Foreign-registered motorcycles can still fill up their fuel unrestricted.
UPDATE 3:37PM: Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad says that the full new subsidy system cannot be decided immediately, so only initial details will be announced tomorrow, with the full picture to be unveiled in August 2008. He also added that the fuel subsidy mechanism could involve the following methods: a) cash income subsidies b) quota system tied to MyKad or car registration number.
With this latest piece of news, a market price at pump for petrol may not be introduced from Wednesday onwards as previously indicated. The market price is likely to be truly insane compared to what we are used to – in the high RM3 range, close to RM4 per litre.
UPDATE 8:15PM: Buletin Utama TV3 mentioned that according to calculations using a crude oil price of USD130 a barrel, the market price for a litre of RON97 petrol would be RM3.12, and this would not include a potential fuel tax.
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Must get ready to ride motorcycle to work!
Yah dude, motorbike rulez! I love cars but right now it just dont mk sense-lah. Parking at workplace is non-existance, jam after work is stupid.
I dont have a family to shuttle around either. My petrol bill is around rm50 only.
Only problem is when it rains, like right now, pouring crazily! Then most girls also get turned off when u say u’r just a mat rempit, no flashy car…. haiz… your choice, money or chicks :-P
If the G want to implement petrol/desiel price according to international market price,then these point should take into consideration :
1. Vehicle/Car price – Our G always compare our subsidies petrol price with our neighbour Thailand.But do bared in mind that Thailand roadtax & car price are far more cheaper than here,even Vios only sold at RM56K.
2. Petronas – What will happen to the subsidies if the G decide to stop the subsidies to rakyat? They maybe can use it to reduce our roadtax & car price,or reduce the TOLL all around the country.
Hope is not another soap opera again…
Previously when the govt did reduce the subsidies, they promise they will use the income to make public transportation better.
A year after, traffic condition is getting worse, choked Komuter and LRT passengers are getting mad, and subsidy to RapidKL is being retracted. All along when the worldwide gasoline price is high, what happened to all net inflows gained from oil royalty and tax windfalls?
Not to mention the excessive excise and road taxes slapped on a basic transportation necessity for the poor Joe with 5 kids to be properly seated and buckled up. And traffic jams even in highways with toll barriers.
Oh yes the government can retract back fuel subsidy so that the consumption will reflect the true market reality, but with the ridiculous excise and import taxes for vehicles, lack of toll road alternatives, high road taxes for engine capacity normally required to move typical sized Malaysian family and lack of Euro4 diesel offering, I can say the government is guilty of misappropriation of taxpayers’ money.
ahh time to buy something like a Smartfor2. =/
I will go for cash incenttive. Look like everyone in the cabinet is ‘pening’ thinking of the new structure, are they?
These politicians always talk about petrol “subsidiesâ€. I think the rakyat need to show the power to change the G.
Are they sincere enough to subsidies the “rakyatâ€
1) If they are sincere, they should provide the good transport system to all the city and let the “rakyat†to use the transport system instead of buying car. But again, this approach will reduce their revenue on high car “taxâ€. So they want both revenue at the “rakyat†expense.
2) Petrol going up should be good news to the exporter country. Why these monkeys telling the “rakyat†that they are providing “subsidiesâ€. Can they provide the figure on how much the Petronas had increased their revenue? From 80bil to how much?
3) All the rakyat here has pay in advance for the fuel “subsidies†due to high car Tax. So we don’t mind to follow the fuel’s market rate at RM 3.00 per litre if they abolish the car “Taxâ€. Can they do that?
They take everything from “rakyat†and make everyone own a car with high car tax and our Petronas getting higher return to subsidies the cronies.
PLEASE remember. Subsidies only apply to the importer country and reducing the expenses for petrol from everyone will eventually increase the disposable income for rakyat thus the economic will become better.
Talked to few Indonesians. Currently the petrol price in their country about IDR 6000, jumped from IDR 4500. RM1.00 = IDR 2850 . (They are using RON 88 if I’m not mistaken, stand to be corrected). It means that now the price of petrol in Indonesia is RM 2.10 per liter (for the last 2 years the petrol price in Indonesia was only RM1.60). And yet they still complaining that the price of petrol shouldn’t increase in their country. They will produce a supporting document. Have yet to receive.
Just imagine. Indonesia is an oil NET IMPORTER with a population nearing 240,000,000. How much the subsidy would it cost them. Malaysia is an oil NET EXPORTER, with a population of only 27 million.
It is maybe true that the government will have to spend nearly RM 50 billion for petrol subsidizing but how much profit will government earn when the price of oil increases from USD80 last year to USD135 this year? They should disclose this too. And where was the money in profit spent? Is it for the benefit of people of for the benefit of some cronies?
If the price of oil increases in Malaysia, of course it will bring to some ignorant Malaysian who wants the price to go up so that they can make SHORT TERM profits or bonuses. But one has to remember when the gas price increases, the basic goods price such as flour, sugar, cooking oil will increase too. This will create inflation. The value of buying power will drop. Our currency will also depreciates then the living quality will drop as well. At that time maybe the price of Hondas, Mercedes, BMWs will not be as affordable as today.
One also needs to remember so many products including cars are traded in other currency especially USD, when our currency depreciates, the same good clothing that we are wearing today might worth a couple more. Our thousands, million or even billion of ringgit saving will worth lesser than it is now. Some ignorant will transfer their money outside this country which will drop our currency even more. So stop being a jerk, think for a long term not a short term. Government should continue subsidizing, and use lesser octane grade if they have too. Meanwhile using the profit from soaring oil prices to improve on public transportation and education.
The advanced country such as the U.S. is STILL using lower octane rating compared to Malaysia octane rating. The US is using RON 91 to 92 their lowest grade. And STILL a lot of people is STILL fill in their tanks with the lowest grade gas/petrol.
The car works just fine. Remember a car is not meant for racing but for a medium of transportation. If the lower RON give you a knocking, then tune down your car for the sake of the rest of Malaysian.
Me too “pening kepala” if gas price rocket up!
Poor me!
Ok if market price is the answer, then allow the petrol company to compete and use the savings from subsidy to buy back the toll roads and do something about the stupid tax and duty for cars. At least an incentive duty and tax reduction scheme for hybrid, euro 4 diesel or measure cars based on the emission level.
The rising of other price of goods will be inevitable, but a point to ponder is that even in an airline, fuel is only about 30-40 percent of the total cost. Airlines wasnt subsidised for their fuel all this while, but then air asia and mas still cud absorb the rise and gives free seat etc except that u have to pay a fuel surcharge.
So if the roti canai seller (who mostly didnt pay their income tax) asking for even 50% increment of the current price, then u know its a bullshit and use your rights as a consumer….
Either way we are screwed. Petronas making huge profits, politicians plundered the coffers and now the rakyat is screwed. I am fortunate I can withstand the increase but how about the lower income rakyats, can they manage with the price of all goods increases by 20% ?
These monkeys and donkeys are using their a** to think! They are screwing up! There will be a BIG chain reaction following with this fuel price up.
Follow international price! Why the car price don’t follow!????!
As we approach free market status, the economic and political power is also being balanced towards the rakyat. How do we educate the masses that they hold more power now to determine market prices? As some prices soar, other prices will take a tumble, question is, which item? And will it benefit the rakyat and to what extent. Will the quality if life improve or become worse.
It appears that this issue generates more questions than answers and it comes down like a domino effect. Other than Malaysia, is there other countries experiencing the same situation and if yes, what is the action taken by them?
Hi,
I quote from:
tricycle said,
June 3, 2008 @ 4:52 pm
Good intellectual discussion we have in here, keep it up!
Thanks!
The govn always compare our fuel prices with other countries, but why they never compare our local car prices with other countries(our car taxes are among the highest in the world)? 100% 150%?? Insane levels of taxes. Yes, S’pore may be selling cars at a slightly higher price than us, but we can never compare to them as their average income is also much higher than ours. Our salaries hardly increase at all. But price always increase.
Yes, I am willing to pay higher prices for fuel, but the govn must also lower the car taxes. Its been 20 over bloody years Malaysians have been paying so much for cars. Even if it takes to close down crap Proton, then so be it, for the benefit of all the RAKYAT!
Malaysia could have been a much better country if it was being better managed. We have so much natural resources eg. oil, timber, rubber and palm oil, yet our country lags far behind Singapore in terms of advancement. They might have nothing, but their govn is always striving for the better of its people.
It’s always been the case whereby the whole country suffers for the benefit of a few!
i seriously don’t mind paying full price for petrol, as long as i’m not burden with anything else. i mean, road tax are just plain annoying, and don’t get me started about the tolls that we need to pay. i think it’s time for the government to take back all those toll roads from the concessionaires (the should be able to save around 20-30 billion/year from removing fuel subsidy so buying those toll roads that costs only 2-3 billion shouldn’t be a problem) and improve our quality of life by increasing our salary to at least match the market rates. what about those places that don’t have toll roads? well, just vary the assessment rates for god sakes. i mean i don’t mind paying a bit more to my locality as long as the roads are nice and toll free
in singapore you pay market price for fuel but everybody know how much they make over there. and the fact that it’s pricey to own a car over there is offset by an extremely efficient public transport system. i think government should continue to subsidize gas price for use of electricity and electricity only and not industries as it’s a basic need for the people. also all those money making water concessionaires should be abolished right away as water is another basic need for people
i’ll be pissed if the government keep on talking about changing our lifestyle but they themselves keep on spending on lavish stupid projects. i really2 hope that they would be implementing the best solution to remove the subsidy and in the mean time think about the hardship that the rakyat would endure with the ever increasing price of basic needs….
just wait tomorrowlah……..
btw, i hope our government won’t be so low to this level of worse case scenarios
worse case scenario 1:
-the G announce now petrol is at market price
-more people buy motorcycle
-G increase tax of motorcycle
worse case scenario 2:
-toll concessionaires complain they’re not getting enough traffic volume and making losses as more people use public transport and avoid car as fuel price very high
-G announce now motorcycles have to pay toll and the G would subsidize the toll concessionaires so that they’ll be profitable in the tune of billions from the money saved by removing fuel subsidy
worse case scenario 3:
-fuel price increase to market level, G says no inflation happening, see the “basket” price no even increasing (that’s what they always say anyway)
-the G keep on spending money on lavish projects that has no benefit to the rakyat from the money saved
-G says, standard of living in Malaysia has improved and we’re saving billions from not subsidizing fuel but we’re not giving it back to the rakyat as we need to do this and that blah blah blah … – this is the ultimate worse case scenario heh….
says: Altis 1.8E – 109,900 – KL
68,738.99 – Langkawi
Diff – 41,161.01
Round down 40k/10years/12months
RM333.00/month
Who wants more?
If they don’t charge high on import tax,
Just reduce any subsidy,
u’re welcome..
Will anyhow the g is abolishing the import tax of imported car?Wat advice will u give if i’m heading a new one?will kill me if they really do it.Ya, P1 really kill rakyat..Initially, ‘he’ was just thinking of making the macro economy better by looting your choice on purchasing foreign car, and end up lotz of problem+high maintenance frequency on p1. Then now because it was implemented, and any reducing on import tax will results in used car company closing up(Immediate effect), new buyer never change their car until the repayment is done..
If: P1 was manufactured well, no problem at all..we would just go for it, don’t even bother about foreign car..
but: wracking sounds, parts failure (which rakyat were brain washed tot it was ‘normal’, or ‘ok la’)
but: end up, consumer is ok with it, where the g was very happy since then enjoying the extra charge on tax, now reducing subsidies, n..wat next?
Basically everything was not benefiting the rakyat..n who knows?probably it was bcoz thoz who’re suffering by P1 were thoz who made the most contribution to Malaysia Macro economy. Wat was good of a g who only cares about their macro eco, but not the rakyat(micro eco)?
jflee169 said,
June 3, 2008 @ 5:22 pm
These monkeys and donkeys are using their a** to think! They are screwing up! There will be a BIG chain reaction following with this fuel price up.
Follow international price! Why the car price don’t follow!????!
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New to Malaysia kah…. There is never fair ok!
RX-ate said,
June 3, 2008 @ 5:40 pm
The govn always compare our fuel prices with other countries, but why they never compare our local car prices with other countries(our car taxes are among the highest in the world)? 100% 150%?? Insane levels of taxes. Yes, S’pore may be selling cars at a slightly higher price than us, but we can never compare to them as their average income is also much higher than ours. Our salaries hardly increase at all. But price always increase.
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Yeah. Not forgeting having a COE on the cars! Singaporeans HDB flats pricing is more insane. Please lah..
Why you all complaining so much? I see almost 99% blaming the G but still most of you fellas voted them. Live with it for now and wait for the next election la! Anyhow, this is what I’m gonna do. I’m gonna buy a huge tong that can fill at least 5000 litres of fuel, fill it up today, then when the price shoots up to RM4 per litre I’ll go sell it to the Singaporeans. Immediate RM10k profit in a few weeks… he he he.
Sigh…. I think whatever the announcement, it won’t be good news la.
My question is:
Malaysia also exporting petroleum, if prices are high, our country also make higher profit through petroluem sales, what is the excuse for not able to provide cheaper fuel to the ‘rakyat’ compared to the ‘net petroleum importing country’
If government wants to implementing market-priced fuel, then they should abolish the hefty tax structure for vehicle, so that the savings can be used for non-subsidised fuel. Why still suck the blood of the rakyat like vampires and cried out loud cannot bare the subsidy anymore?
My opinion to the idea that subsidy based on income or type of car are not fair. All rakyat should enjoy the same benefit, the fuel subsidy if any should be the same for all.
The subsidy money also come from tax payer, the higher the income, the higher the tax, and at the end of the day, the government say these people who contribute most to the tax will get nothing in return. Is this fair?
PS: I am not rich people for issuing the above statement, in my humble opinion, I just feel that, things like subsidy from the government should be distributed the same for everyone despite rich or poor.
Lots of insane ppl in here talks alot, think of themselves 1st, n most of all, nv understand what the h*** they are talking about.
Conspiracy theories are all they tot of, rather than solution..pitiful n yet none constructive comments from 1st to d 1 b4 this.
Inflation is international issue, not just in Malaysia. Changing Gov will not solve that! Y not use “People” rather than “rakyat”? want to play rojak is it?
Rather than speculating the result, n throwing out more conspiracy theories, you guys better think of how to cut cost n be conscious on how u spend on petrol! If you are so green at 1st, u should’ve known the way rather than just bitching about it.
Yes, gov policy need rearrangement, but sudden change will turn our country up side down. Any1 of you have any idea in management? Most commenter above doesn’t seem to have any logical mind..
Don’t mention the import tax dude, din u notice those cars that r imported from japan like vitara, lancer, hv less tax than so called 40% local content vios? dnt make me start it guys, are u all so blind? do u think T n H brand will lower their price? those T fans keep saying T brand is good cz the 2nd hand value is high. there goes ur 2nd hand value once T n H suddenly COMPLY(which i doubt they will ever comply since malaysia is their gold mine with lots of blind consumers) to 5% tax? How about UMWT markup? Distributor mark up? Sales markup? vios in thai is 56k? wake up, after conversion is about 60k!
overly protected by previous gov is those ppl complaining inside here, when the gov stop protecting, ppl start complain more. what kind of nation is this? people arent even consider things wide enough, u said gov ppl arent good, but those kind of tak apa attitude also reside in many of u. As usual, your fingers just point at other ppl rather than improve yourself. pitiful..tak boleh diharapkan, people n government
today something crossed my mind when i was driving. it is impossible to base someones need for petrol based on income.
i think the govt should look into us providing receipts and use odometer snapshots (like a digicam) to back our claim for subsidies. those who plan to play cheat to wind and unwind their odometer can’t do it, as the govt would require proper stamping of logbooks to verify if that much distance was travelled. i travel almost 2000km a month (400-500k every week) and i’m only a student. the govt can charge the fuel price without any subsidy, but give rebate after my claim has been approved (which i hope would be fast). rebate should be given in yearly amount, as this is more efficient. this would prevent others from buying too much petrol and not wasting it if necessary.
i think the govt should use our toll receipts as back up evidence that we do travel this much, then we get a form of rebate in terms of income tax rebate and so forth. most poor people can’t afford to pay much fuel or buy that much. plus this would stop them from abusing fuel subsidies. i just hope some cabinet fella comes here and read this.
Come tomorrow, the one that will be affected the most is the middle class rakyat. People like me and, I believe, most of you guys. We are not poor enough to qualify for the decent amount of the subsidy nor rich enough to absorb the full price.
I really do hope the gov take our plight into consideration. A policy should not be too simplistic as to simply divide between the rich and the poor. There are middle grounds too. Please Pak Lah.. don’t victimize us – the average income earners!!!
Like someone said before, Malaysia = NET Oil Exporter. Meaning we export more in value than we import, How the heck are we losing money to subsidies? We need to pressure the gov to explain this.
lolx.. RM4 per litre anyone x.x..
G have to give tax free for new cars and no road tax require if they want to remove the subsidies for the fuel.
Anyway to buy fuel now and stock up for future? Put in own silo or something like that? I know the fuel will evaporate as well. Just an idea how to save cost…
cutting down import tax wouldnt do any good in solving this problem…it will only lead to a new problem. it will only do good to first-time-owner. how about the rest?hv to wait until want to buy a new car? how about your current car?nobody wants to buy a 2-3 years used Honda City when they can buy a new one at the same price if not cheaper…
Kevin Lee, it might be fun snapping picture around, but believe me you dont want to involve in any ‘claim related exercise’ involving the ‘G-unit’. your ‘exercise’ might take a while it become a ‘marathon’. Besides, some of us not fortunate enough to have extra money to spare until the end of the month.
I totally agree with ckcheong. The best solution is that every ‘rakyat’ is given the same amount of subsidized fuel despite of their income level. It is simply because every one of us contributes our fair share in income tax. Why should any of us being denied our rightfully piece after what we contributed?
to fastcx, some people are not fortunate enough to have extra money by the end of the month even if the only travel they do is to the workplace and back home riding m-cycle…
just my 2 cent…
fastcx said,
June 3, 2008 @ 8:02 pm
Inflation is international issue, not just in Malaysia. Changing Gov will not solve that! Y not use “People†rather than “rakyatâ€? want to play rojak is it?………. bla bla bla….. then,
As usual, your fingers just point at other ppl rather than improve yourself. pitiful..tak boleh diharapkan, people n government
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What? Cakap tak serupa bikin ka? And what theory is it if the toll agreement between the G and the concessionaires is under OSA?
MANY PEOPLE has been thinking about how to conserve, but then, diesel cars? Hybrid? Any tax exemption or incentives for the RAKYAT if we go for this option?
Yes, we are all human and we loves to bitch…
PROTEST! pROTEST! CHANGE THE GOVERNMENT RIGHT NOW!
I really cannot understanding a petroleum export country like us end with this scenario, just like any others country does not have natural resource, industrial product expensive, servise getting expensive than it was, primary industrial goods price also increase, huge external debt of and now the natural resources also become expensive, where is all the money gone by the way? one hand try to say ‘we’ lose millions of ringgit, on the other try to suck billions of ringgit…
wat sai men………export higher grade oil……..import lower grade oil
– complain subsidy up too fast tak tahan……
– yet never mentioned/disclosed petronas profit up so so fast with the export of higher fuel grade and the price of crude oil hitting $130 per barrel.
if really free flow market price…….sell motorbike may be a good business for now
i personally think that we all hv been dragged into a situation that we all must agree that the petrol price must increase…
The government ask for our opinion on how it should be done…and we all came up with all sorts of brilliant idea..use mykad la…tax rebate la..and so on and so on…
Nobody even mentioned that the gov should just continue to subsidized …
What their main intention is to get the rakyat to talk about it..get used to it..talk about it everyday..and when the price really hike..everybody will just accept it…
It’s all about Law of Attraction…when we all talk about price hike..for sure it will hike…
We have many reasons to differ from our neighbors..be it s’pore or thailand..
Maybe this was the last time for “B*” in “G”, hence like to suck all money into the Swiss account before out of job…than like other party clean up all the BAD items, else guess will not have so much of high profile activity after lost in election.
IIANM, last week I saw a notice at SS15’s Shell station displaying actual petrol price now is ard RM2.9X, forgot the exact price XP…
and again,the higher cc cars gona get its price dropped again.Its time to own one.
Very very good comments and theories. No use la, G will do whatever they see fit… Since when logic works. Suggest to drop tax for reduction in subsidy??
Cannot la. It will be LPPL what.
If cost increase, we also join in la. Now we got reason to charge more for our goods and services. If you are lucky, you may even make more money now. If customer ask, then just say fuel cost very high….new opportunities will present itself.
Let the party begin and enjoy the ride…..
BTW, I recently saw a sticker for the Proton Suppliers Association stuck on the dashboard of a Mercedes S Class. I wonder what cars do the bosses of the various suppliers to Proton drive??
No prizes for guessing though….Wonder if they would ride in the car that is made from the parts they supply… Perhaps all the rakyat should continue to join hands and together we can ensure the survival of these TOWERING GIANTS……just my half sen comments.
Tahnk god i manage to hold my new car puchase. the G will surely reduced the whatever tax on car after this, lower interest too. But the domino effect is really scary.
PROBLEM:
oil price is increasing.
G got to spend money to subsidize people.
SOLUTION:
short term—> no more fuel subsidy.
long term—-> go electric lah!
MAIN PROBLEM:
why we are too dependent on fossil fuel?
electric can be obtained from renewable energy sources such as
hydroelectric, solar & wind.
or
opt for bio-fuel, agriculture sector will be blooming also!
ACTION:
i think the G SHOULD CONSIDER these options RIGHT NOW!
aku tak marah, cuma geram je.
Guys,
I’m wondering too where have all the profits from Petronas gone to? If they lower or remove the subsidy it will definitely burden the rakyat. I got a friend travelling to work from each day about 110km a day and his petrol expense is around RM 90 a week using only Iswara 1.3. This totals up to RM 360 (if the month has only 4 weeks) a month. Just imagine if the ‘G’ lower the petrol subsidy, how much my friend will have to pay even though he’s a factory engineer earning around 2k++ per month. He has to think about other expenses also like house, bills, car loan, personal loan, etc..and still they ask us to change our lifestyle…change our lifestyle my a**…My hope is that our ‘beloved’ and ‘most trusted’ ‘G’ will think a better solution otherwise not only my vote but most of our votes will go to the opposites. We vote the ‘G’ for them to serve us and not we serve them and their cronies
QUOTA SYSTEMS NEVER WORK!
We have already seen the implications of implementing such a method in other areas. Its a short term solution that easily slips out of grip.
Electric and solar cars are still some way off since issues such as mileage, charging times and sustainability of such technology is under scrutiny. We still need fossil fuel to power the plants that produce electricity to a certain extent. Another thing is disposal, fuel cell technology is still under study because of disposal issues regarding the cell. Also, the electrode materials are costly and even established manufacturers have to subsidise such products at the moment.
cry, the beloved country
a hurricane is coming
hey, a haiku..
…perhaps hybrid may lighten the problems?
much thinking is good, but too much thinking makes man stationary.
Articles from Malaysia today.
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Petronas’ RM600 billion profit: Where has it all gone?
Posted by kasee
Wednesday, 04 June 2008
So the figure has been revealed. Petronas’ group profit before taxes, royalties, dividends and export duties amounted to RM570 billion for the period from its establishment in 1974 to 31 March 2007.
If you include the figure for the period until 31 March 2008, then you are probably looking at a figure closer to RM700 billion, with the higher oil prices.
Let’s see the breakdown of that RM570 billion:
Payments to the government (royalties, export duties, taxes and dividends) – RM359 billion
Allocations for shareholders, royalties and taxes abroad – RM41 billion
Profits re-invested in Petronas operations – RM170 billion
Total RM570 billion
(In case you are wondering where I got these figures from, they are from an oral response in Parliament to a question put forward to the Prime Minister by the MP for Bagan, Lim Guan Eng.)
So the government has received RM359 billion from Petronas over the years. If we include the year ended 31 March 2008, the figure would be in the RM400 billion range.
The big question is, has the government made the best use of all that money
I believe the fuel subsidy is supposed to lighten our burden. The government is entitled to remove it, no doubt about that but I believe the question here is as posted by figo is how would the government spend the money? Would it they:
a) Send another Space Tourist to space?
b) Purchase a few more submarines and fighther jets?
c) Line up the pockets of cronies, since Maybank’s recent acquisitions have not contributed enough?
d) Improve public roads and the publice transportation system and remove tolls?
e) Approve more scholarships to for deserving students regardless of race?
f) Actually help the indigenious people in East Malaysia, by providing basic infrastructure like electricity and water?
If they can say d) to e) and prove it with a solid plan reveal to us, then that is good. But I bet it would be c).
So there you have it, ladies and gentlemen, the government has found another way to screw the people aka rakyat.
To fastcx, I agree that we all should work hard to improve ourselves, but at the same time would we expect the people we voted in to power to have at least the consideration if not the wisdom to do the same. Simply removing subsidies without providing us a proper alternative is just plain short-sightedness. Malaysian’s by nature or even heritage are a docile bunch until recently in the general election, when we sent the incumbent a message that non-performance will not be tolerated and yet they decide to do something like this. I do not expect the subsidy to last forever but at least there should be a proper plan on providing alternatives which is not happening now.
So to YAB Sharir, please don’t let us down like your predecessors, give us a viable alternative.
omg.
i’d agree with some of you who are sayin that malaysian always compare the fuel price with our neighbours.
so,now it’s time to stay at home and not to waste ‘minyak’ anymore.dont produce anything…just relaxed and stay at home..
Well, this 3 famous quotes can be heard soon …
1. ubahlah cara hidup
2. masih termurah di dunia …
3. we will improve the publuc transport
Hi Paul, first of all, love the site. full of info. One idea on the fuel subsidy is to remove all subsidy but instead, make it free for all public transportation. This would encourage people to switch to public transportation, save on fuel and the environment as well! With the removal of fuel subsidy, the money saved can be puoured into inproving our public transporation system! Also, remove all toll booths. With RM45 billion, we can re-acquire all the highways and make it free for all to use! Just my 2 sen worth!
It’s time to ride my old Honda EX5 to work, jalan-jalan, makan and shopping again!
ho yeh
reminding of my days in nz where I drove to look out for cheaper petrol.
when the price drop, some petrol station even put up sign of “running of petrol”…to keep the stock for higer price!
will it be the same for malaysian petrol operators?
fastcx said,
June 3, 2008 @ 8:02 pm
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man, you’re complaining bout all the comments made by other readers (selfish lah, blind lah, useless lah etc), so i thought yours must better. but after reading it, i found it even worse! not even 1 suggestion! all bashing only…
c’mon la bro, most of us are all grown ups, we know what we’re saying la dude. haiya…
farghmee said,
June 4, 2008 @ 10:06 am
…perhaps hybrid may lighten the problems?
much thinking is good, but too much thinking makes man stationary.
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yes, but guess wat, how much tax they make from a Hybrid?or how much u need to pay for a Hybrid?
Did they encourage you to alternately switch to a less petrol consumption car?tat answer leave it to u..
Or did the P1 produce a Hybrid?or the question should be…”are they capable of?”
i actually did some comparison for fuel prices around the world…and Malaysia probably rank in the top 15 or top 20 in cheapest fuel price with around USD 0.60/liter. above us would be mostly OPEC countries which we would never be able to match their production or fuel price (less thatn USD 0.30/liter). but let’s take a look at those countries below us.
the 3 major economy below us would be China (USD 0.74/liter), russia (USD 1.00/liter) and USA (USD 1.05/liter). as both china and russia are present and ex communist country, lets discount them out for a while. let’s take for example USA
the current average fuel price in the USA would be USD 3.95/gallon which translates into the USD 1.05/liter at the current USD 130/bbl oil price. out of the USD 1.05/liter, around 60% goes towards crude oil, 20% towards refining costs, 15% towards state and federal taxes and around 5% is for transportation. so compared to us in Malaysia, the petrol price there RM3.38/L, or around RM1.45 more expensive taking a currency exchage of USD 1.00 = RM 3.22.
in terms of crude itself, the cost is just around RM2.02/liter which is around the price that we’re enjoying now. but, by all means, our refinery cost should be lower as our wages and operation cost should are not high as the USA, transportation cost should also be lower as we’re just a small country compared to them. OK, the other 15% of their fuel price is due to the state and federal taxes which are put into their highway fund. that’s the reason why almost 80% of the roads in the USA despite being big highways are free of charge because their citizens pay up front when buying fuel.
so, let’s take out that tax part to cater for the lower refining and transportation cost and let’s calculate the total cost of fuel in the USA and it would just be around USD 0.89/liter or around RM 2.86/liter. for me this is the current acceptable price level that i can accept for our unsubsidized fuel price.
as we can see, our unsubsidized fuel price is comparable to the USA but in terms of standard of living, and the fact that they pay almost no toll, we’re way behind. so for me, i would really want to know what government plan to do with the additional billions that the would earn with the the removal of subsidy. i would also be interested to know how much is the present value of all the toll roads in Malaysia as it seems that almost all toll roads in Malaysia are making money but somehow the government keep on subsidizing them and letting the raise the toll rates….
9166 said,
June 4, 2008 @ 4:37 am
BTW, I recently saw a sticker for the Proton Suppliers Association stuck on the dashboard of a Mercedes S Class. I wonder what cars do the bosses of the various suppliers to Proton drive??
No prizes for guessing though….Wonder if they would ride in the car that is made from the parts they supply… Perhaps all the rakyat should continue to join hands and together we can ensure the survival of these TOWERING GIANTS……just my half sen comments.
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Instead, ask this question.. Did the education ministry/any ministry send their kids to UM/ any Malaysia U??zzz
najisbest,
aiyah…the additional billions go to Bodowi’s pocket lar…somemore what? you see, he know his time is short.
once again the people were screwed by fuxk lah and Boleh Naik gomen