We may soon see the death of the trend of private registration consumer diesel cars and trucks in Malaysia! This is because if everything goes as intended, diesel at the pump will soon be unsubsidised, with the government looking at alternative ways to deliver subsidies to those that they deem needy. Diesel at the petrol pump is now RM1.581 per litre. With the subsidies taken off, it is expected to cost more than RM2 per litre. This may kill the sales of popular lifestyle trucks which are driven by consumer purchases, while the business workhorses will probably not be affected as much.
At this point it is not clear which exactly parties the government will continue to subsidise, but according to Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad it would include school buses, the transport sector like buses and taxis, and other economic activities which the government deems require diesel subsidy.
“We are looking at various ways to restructure the mechanism in providing the diesel subsidy as our first area of focus on subsidies. We will look at how to raise the price of diesel at the pumps to a non-subsidised price, and the subsidy to reach the target group instead. If the price is raised at the pumps, then there will be no smuggling of the commodity or abuse of the diesel subsidy,” said Datuk Shahrir.
A salaryman who bought a 2.5 litre turbodiesel pickup truck in efforts to save on his monthly fuel bill by trying to make up for the more expensive road tax with the monthly savings in fuel expenditure could end up being on the losing end in this deal. Together with the recently reported bad crash test results with pick-up trucks in general, we may see the popularity of pickups diminish significantly.
But with the ability of diesel engines to usually extract more kilometers out of each litre of fuel, it may continue to be popular, just not as wallet-friendly as before. We will just have to wait and see what the market price is if this proposed plan is put in place.
This is definitely bad news.
But a diesel engine is more economical than petrol engine right?
If this is implemented, the unsubsidised diesel’s quality have to be improved, so we, the Rakyat, will get what we paid for.
In UK diesel is expansive to begin with. Not big thing here. Also lots of rich people are using diesel cars to get cheap petrol. BMW 520d anyone?
Problem is how to make it cheap for the needy, not like you can automatically change the rate for ever different vehicle
They are late in doing this. After this, all the pickup sales will slump tremendously including their second hand value. It is likely that the government will give cash incentive directly to the fishermen, and public transport operator. This can help curb the selling of diesel to the Siamese fishermen by our ‘clever’ fishermen for instant profit, or even the smuggling between boarders by land. In the other way, maybe those diesel vehicle owner will get a huge road tax cut after this. The price of the diesel will be RM2.66 a litre maybe. Maybe the custom should charge those foreign vehicle going out from Malaysia to Singapore or Thailand. The mechanism can be a simple, solution. For example, if the fuel gauge show below a half full tank a RM40 charge will be imposed, and more than half a tank RM70-80 depends on the cc’s of the vehicle. This is just an opinion. The same should goes for the traffic summonses. Cannot go out unless the summonses is cleared.
I really respect the minister and l can rationalize this step IF ministry can’t look at one angle. If they want to follow HK, Taiwan, Japan, USA, UK, Australia in FUEL VOLATILE PRICING they First and Foremost must change how the vehicle price mechanism take affect in Malaysia.
This is very serious abuse (for the sake of white elephant Proton), l’ll never justify a RM49k Stream in Japan will be retail at RM149k, another 200+% slapped into original price.
Very SILLY when everything we compare with other countries BUT without flawless. What happen to our disposable income? Low salary yet we pay car like buying a house, pay a house like buying a building?
Problem when you let a stupid to run a country.
No wonder, the disel is cheaper in here compare to disel price in US, since been subsidised…
If compare disel compare to regular unleaded gas, here is disel cheaper than regular gas…
Diesel price is more expensive in the UK but the road tax is still the same as the one petrol users is paying. We diesel users will be at lost here in Malaysia, paying over the roof for the road tax and now .. paying over the roof for the fuel too.. Where is this Anwar guy, why not calling your ‘crossover’ MPs to join you now and we can get our fuel price cut!!!
a big blow to the diesel car owners, and bad news to the pick up trucks or 4×4 vehicles dealers in m’sia. I see another big issue coming up
I don’t really care if the governmnet remove subsidies on petrol and Diesel UNLESS they reduce taxes and road taxes on cars. This will at least give an option for users to switch vehicles. If you are already paying 1000+ for your pickup for the next 5 years, can you really afford to pay another 200/mth for fuel? ..on top of your already higher road taxes?
How the hell are companies going to deal with such system shocks? How will any of the auto companies ever going to now sell these pickups? And the average man will have to deal with highly depressed resale value of these trucks.
Call our government short sighted is an understatement. They always come up with policies and laws that either they have no way of policing or just plain doesn’t work.
Although I dont own such pickups (actually I hate these oversized road hoggers), this is still plain stupid on the part of government.
First lower price of cars and road tax, then remove the subsidies, not the other way around.
Improve the quality first before removing the subsidy, we rakyat deserve what we have paid for!
If the Govt reduces road tax on diesel passenger cars that would be fair and help balance out the increase in diesel fuel. and they better provide Euro 3 or Euro 4 diesel fuel at this price. We have been getting the crappy high sulphur diesel for so many years and seems like the whole world has moved on but we are still stuck with the same old crap.
Diesel cars are still far more efficient than petrol, with it easily giving 25% more mileage per litre of fuel.
GOSHH …………..ITZ A DAM **** mad…man KILLING DIESEL PRICE….LETS SEE PETROL PICK UP RISE IN DEMAND………
Our government is still not giving better incentives interms of road tax reduction for diesel vehicles that complies to Euro 2 or higher. Furthermore, our diesel quality available at the pumps is questionable. There was a directive for petroleum companies to supply the low suplhur diesel but I don’t know what happen to that now. If the diesel fuel quality was improved and the diesel vehicle complies to Euro 2 and above, a suggestion would be that even a higher amount of reduction of road tax should be offered. If not, the country is losing money becausing certain parties are buying our cheaper fuel and selling them elsewhere.
Increase 68.24% or RM1.079 per litre of diesel, the impact :
1. BN will soon to the end of the road.
2. No reason again to our stupid Government to said people abuse the subsidy.
3. All the diesel vehicle owner, dont think for better quality of diesel, it quality remain unchange.
4. Road tax will not drop too, we will see.
5. Subsidy cash to………….give u the better way to corrupt more, really a good thinker,
6. The state like sabah & sarawak will surfer because of this.
7. The automotive industry will soon divest the business from “Boleh Land” to thailand or indonesia.
8. Huge impact for M’sia economy.
9. Before that, the bn said malaysia will be the automotive hub in asia, now, Ha,,,, Ka,,,, Ch,,,, liao.
10. Goverment start to push the responbilities to the rakyat, like income tax form, u need to estimate the income and paid, and anything wrong u need to paid penalty.
11. Safe the money and built more toll, collect more.
12. Still have a lot choice, but the government won listen, will see “our sky will change again, 8 March 2008 already change 5 times, will change from black sky the blue sky soon”.
IT IS TIME…
Calling all bengkels, pondok workshop or uni students to come up with creative fuel solutions. Usually solutions come from the least expected people.
Anyways the decision clearly indicates why we are developing and NOT developed country. Our policy makers are undeveloped!
On another note, is Perodua launching another small four seater since Viva not doing well?
here’s a formula
1) increase the price
2) increase the quality
3) drop the roadtax charges(up during anwar tenure)
4) subsidies green car by not charging more tax to it.. no money going out in this step. onli no money going into ur pocket.. no biggie rite.. since u oso no need to pay subsidies so big…
5) enforce it!
don later be stupid and come out in the press with big cap letter SELANGOR sells subsidies diesel to siam ppl… ok.. we get it.. enuff ald.. next election pls.. stop ald.. get our automotive lubricant enuff so we all can have a water slide party on it..
We have to accpet and ready to pay higher fuel prices. The fuel subsidy system is a failure and exploited totally for smuggling since greed is human nature, cannot blame that. Everybody if given a chance to make money, will crooked it up. The only reform (again!) from govt is the car road tax, duties, insurance structure. Road tax should include carbon dioxide CO2 emission (preferably less than 250g/ km of CO2 considered clean engine and pay less road tax and insurance) to better promote efficient and cleaner burning cars. Current road tax is discriminatory against current diesel engines that’s far more efficient and cleaner. Govt can consider to cap diesel engine at 3000cc(most diesel SUVs, cars fall under this cap) and below to enjoy same rate of petrol engine’s road tax and insurance premium.
For the life of me, i cant understand how this government thinks that cutting subsidies to a commodity that is used by a larger number of people in the low to middle income group and also the majority of small and medium businesses, who are in fact feeling the pinch of inflation is going to be supported.
Issues of fuel being smuggled etc are issues of enforcement and not really good reasons for cutting subsidies. The social more macro economic indicators need to be used to justify to us why and how the subsidies will be cut and the time frame to do it. I also think that the argument of reducing the cost of transportation in other areas such as road tax, excise and import duties is important.
Removing fuel subsidies has to be studied more holistically, looking at the political, economical and more importantly environmental consequence and benefit.
I just don’t see the depth in thinking and discussion among our elected representatives yet.
IF WE PUT THE KEADILAN OR ROCKET OR EVEN THE MOON TO POWER ON THE 13TH ELECTION STILL THEY TOO CANNOT SOLVE IT. WHY ? :
1. THE DOLLAR
2. THE PRICE SPECULATION OF OIL
3. WARS IN THE GULF
4. RISE OF CHINA
5. RISE OF INDIA
6. DROUGHT (GLOBAL WARMING)
BUT SURELY IF MALAYSIAN WANTS CHANGE ITS OKEY
ITS DEMOCRACY
BUT THEN I THINK ITS JUST THE SAME WITH THE PAKATAN RAKYAT GOV CONTROLING THE 5 STATES. THEY TOO CANNOT DO ANYTHING IN THE STATES THEN JUST CONTROVERSY AND RHETHORICS. ITS JUST POLITICIAN NATURE TO SCOUNRALS US RAKYAT ! THEY SAY THEY DONT WANT TO WASTE GOV MONEY BY NOT STAYING IN THEIR KEDIAMAN RASMI BUT IF THEY DONT STAY AT THE KEDIAMAN RASMI THEY WILL ENJOY HOUSING ALLOWANCES THAT IS NOT MASUK AKAL U KNOW !
SO SO SERUPA SAJA CUMA WAJAH BERBEZA!
the country is going to be run to the ground soon
OH NO!!!!!! this is definitely bad news………
disaster!!!!!!!!
If the gov wants to cut this and that. I think we should be given the right to know wher all our tax goes to!
Let see where all the ringgit we pay goes to!
dr_carz said,
April 26, 2008 @ 1:28 pm
IF WE PUT THE KEADILAN OR ROCKET OR EVEN THE MOON TO POWER ON THE 13TH ELECTION STILL THEY TOO CANNOT SOLVE IT. WHY ? :
1. THE DOLLAR
2. THE PRICE SPECULATION OF OIL
3. WARS IN THE GULF
4. RISE OF CHINA
5. RISE OF INDIA
6. DROUGHT (GLOBAL WARMING)
BUT SURELY IF MALAYSIAN WANTS CHANGE ITS OKEY
ITS DEMOCRACY
BUT THEN I THINK ITS JUST THE SAME WITH THE PAKATAN RAKYAT GOV CONTROLING THE 5 STATES. THEY TOO CANNOT DO ANYTHING IN THE STATES THEN JUST CONTROVERSY AND RHETHORICS. ITS JUST POLITICIAN NATURE TO SCOUNRALS US RAKYAT ! THEY SAY THEY DONT WANT TO WASTE GOV MONEY BY NOT STAYING IN THEIR KEDIAMAN RASMI BUT IF THEY DONT STAY AT THE KEDIAMAN RASMI THEY WILL ENJOY HOUSING ALLOWANCES THAT IS NOT MASUK AKAL U KNOW !
SO SO SERUPA SAJA CUMA WAJAH BERBEZA!
__________________________________________________________________________
Hei dude,why talk politics so loud here? Yeah,maybe you are rite,in polictics world,maybe all are the same.But atleast,if the Era really change,maybe we can get the real answer why our current G now still bising here bising there with the petrol subsidies while we got our own petrol company-Petronas here?Dont be too prejudice with the opposition,because atleast,they have try something new,by “listening” to the rakyat…If you want to talk nonsense about the polictics here,then you better find another forum,we dont want to listen…
So second hand value of diesel cars or diesel trucks (non commercial use) will drop ??
Here goes my dream to own a LR Defender..
Well, it’s fine, if they want to remove the subsidy – but please consider seriously lowering/revising the road tax rate for diesel vehicle.
HAHA…
Now the G has gone mad….for why…? Becoz have to cover their previous drain money from the big ‘commision’ of Sukhoy and submarine…now putting fuel burden to rakyat…so next time expecting all business cost will skyrocket….and don’t forget another buden will come..
HAHA
this will certainly have a chain effect and increase the cost of living of us poor rakyat whether you like it or not.
isn’t new turbo-diesel engine are good for environment ?
(this show our Gov are going reverse again…. belakang!)
Gov said they will give cash for certain group of people who deserve subsidise diesel….. in cash ?
(hope these money would go to the right pocket….)
Wonder if they will adjust diesel road tax and purchase tax to compensate. If they did and it’s successful in pacifying diesel owners, could this be a sample study for the future petrol subsidy adjustments? If it’s the first step towards the removal of petrol subsidies along with other silly taxes, I could see the logic. But that’d be a bit too smart for the govt wouldn’t it…
Whatever happens though, a big haha at those tailgating a**holes who are always bullying cars with their inadequacy-compensating pickup trucks. Hope secondhand value for pickups plummets so much they’re forced to trade in for kancils and get back what they always try to dish out, lol.
can cut back on diesel subsidy but wont get rid of the one of the greatest hindrance of the progress of the automotive industry and economy in malaysia…proton.
hmph.
removing subsidy on diesel. diesel based pickup and SUVs sales will defintely fall, like the Chevrolet Captiva, that diesel version is so damn sweet.
the one thing they did not do right is to remove taxes.
go ahead and unsubsidise our fuel prices but at the same time remove all the taxes that the govt is overcharging us!
i dont mind paying more for fuel when i pay less for cars imported here! the savings in purchasing car can offset the unsubsidised petrol.
i don’t know why they aren’t doing this.
Good Luck to all of us. lol.
This government will never across over relaxing high tax for auto. Ironically, if they want to protect our lousy Proton how come they’ll wooing foreign investors to invest here in automotive and other industry.
For me, I’m ok with de-subsidized diesel if they’ll bring better quality unlike our 80s standard and remove excessive tax otherwise they’ll kill us.
No wonder not many FDIs in Malaysia.
remove subsidy?…fine…fix the damn quality of it as well.
guys( and gals as well),
look at the bigger picture…dont just think about pick up trucks..road tax..politician and etc…
what about price of goods if the diesel susidy were to be removed??even now when the G keep on saying there is no rise on rice price in our country..the price is steadily increasing..people just blame it on fuel and think what will happen when the price of diesel is at RM 2 plus…
our country is running on a very wrong system..and if we keep on modifying the system…it will be a disaster..we are already feeling it..similar to global warming and ecosystem..this courtry will be reach end of this glory..if you cant manage a nation with 27 million population..its useless be a PM man…you are just proving how worst a PM can be..
when we are living in an artficial enviroment…everything is not real…price of goods that we buy till the food we eat…house we stay and car/bike we drive…and not to forget tax we pay….but suddenly you want to bring a part of the real world situation into the artificial one..and its the foundation of our artificial enviroment..haha..how stupid can they be???
how can remove the main pillar of nation building when you dont remove it from the top???first remove the artificial car price..then remove the unwanted taxes…road tax…provide real world salary…facilities..alternative means of travelling(public transport) and better quality diesels…tax exemption for companies transport and etc…and when the country is ready…u remove the subsidy..then no 1 will complain…
sediakan payung sebelum hujan…our G will sediakan payung lepas hujan i guess…even that they dont do….for them..biar la hujan…buat apa nak payung!!!
…abolish the subsidy, that will give another excuse for the blood suckers to increase prices for other things. Damed! just when I though it doesn’t effect me as my moto doesn’t run on diesel. By the way, I notice Myvikiller and king have almost similar icon, coincident?
who cares about small diesel pickups if you don’t own one, what we should be concerned is the increase in prices in consumer goods. All those prime movers have big 9-16L diesel motors you know.
this is big disaster for me and other diesel user! increase of rm0.20 to rm0.30 is acceptable…but rm1.xx is to much! ..with high roadtax, low quality diesel, high tax of diesel vehicle spareparts…this is unfair! and after this the price of consumer goods will increase skyrocket…its ll effect to all …
maybe we should change the government 4 better solution…u re rite Prem3377
..headache…headache…..
remove disel subsidy.. others goods will rise up.. and this will make rakyat suffer more.. hopefully goverment can control the goods price hike after remove the subsidy.. if not maybe no current G for the next 5 years
thise means goverment past their responsibilty to the rakyat…. no more disel subsidy (gov got more money) but poor peoples will suffer even worst..
SOMEONE IS SO TOUCHY HERE OUCH !
I THINK HIS A DAP MAN. SORRY THERE …….
OUUUCHHHHH….
NOT EVEN VOTING U KNOW. …..
BUT ITS GOOD IF THE DIESEL IS UP…
NEXT ELECTION SURE CHANGE G
TAKING THE CHEAP NIKE ADS
JUST CHANGE IT !
VIVA FOR RAKYAT FELLOWS
THE DIESEL WILL HURT THR MALAYSIAN ECONOMY AND THE OWNERSHIP OF DIESEL VEHICLES THAT IS THE TRUTH I AM SORRY FOR ALL MALAYSIANS AND FOREIGNERS TOO.
dr_carz, you stupid fu**tard! Stop using the fuc*ing CAPS!!! You wana get political? Get your stupid a*s to some political blogs and leave here!
you know, i dont quite get it. If the price of diesel increases to say 50%, it does not mean that food increase 50%, does it? Let take for an example.
Food is transported in bulk. If the price of fuel for a truck increases by anotherRM50, the one tonne of flour in price total increases by RM50. Considering a loaf of bread uses 500grams of flour, the net effect increase is really like 2.5 cents increase. If there is 4 chains in transportation before it reaches the end consumers, thats like 10cents increase. I think 10 cents increase is fair. Mine you, that only moving a tonne of four. Chances is, they move flour in like 10 tonnes lorry and if the fuel paid extra is like RM100, it works out even less.
There are many other ingredients to make bread, but the main bulk of it is flour. Even if you throw in another 5 cents, the loaf of bread should increase by 15 cents.
The think is, i just cant understand why a bowl of noodles need to increase by 20-30cents when the quatity given per serving is does not mathematically work out to be when buying the raw materials. A pack of raw noodles increase by 50cents, but one pack can do 10 servings, so why the increase in price does not commesurate with the fuel increase. even if there are other ingrediaents, the net effect on price increase to end consumers is negligible.
Unless somewhere along the distribution line, some guy is making more then he/she should?
Can someone in retail do the maths for me?
maybe the diesel truckers will get free semi-d house. and the fishermen also. poor thing
should have remove diesel subsidy, petrol subsidy and all unfair import duties, tax on import cars! Once and for all!
Dare to change?
Politics aside, it’s a bad news for private diesel vehicle users. We shall see the slump of diesel vehicles sales. Used price of such vehicles will affect more. Well, let’s wait and see.
hey Azrai
i not agree with ur proposal on the border policies!
1st of all the custom officers i think they are not prepared for the complicated formula
2nd this definitely worsen the traffic jam at borders custom
3rd ( i think most important), this will encourage the dishonest officers for corruption!!
thats why till now singapore car to JB pay rm20 policy still delay for implementation!
as a petroleum exporter country, i think petroleum price hike definitely will generate more income for the country, and will trade off the higher subsidies provided, removal of subsidies will cause more unhappiness
hmm..last time lots of ppl talk shit bout subsidies..now when it hurts evry1 nag on bout subsidies shoud carry on..i dont know bout yall..but its really difficult to run things huh..?
There are no such things of subsidies in real world challenge!
Yes, I agree that the government should remove the diesel subsidy in the first place. But a thorough plan is needed to help those poor/or real needed categories like bus and ,lorry operator.
I would suggest to lower the road tax and bring down both import duty and excise rate to complement the off subsidy to diesel.
They should have removed the Diesel subsidy a LONG TIME AGO! After our neighbours have siphoned off millions and millions for so many years, now only they wanna talk about this? They should have done this a long time ago but they must reduce the roadtax to be lower than petrol cars coz petrol is still be subsidised.
I suspect they’re only doing this now coz Proton is working on a diesel engine?
fine, unsubsidise the diesel. but for friggin god’s sake, improve our diesel quality please.
if you’re gonna charge us full price for unsubsidised diesel, at least improve the god damn quality from back in the 90s.
everyone else is already in euro 2-3-4 even 5 stages.
y not jus let evry1 drive 4 free..?? do this complaint..do tat complaint..reduce road tax complaint..remove subsidies complaint..i wonder wat would ppl complaint next…?? lets c..
abolish import taxes and duty on cars and no subsidy on petrol and diesel. free car market and free petrol market works for all. this way u also get rid of the AP system.