The government has opened a Request for Proposal to all quarters for suggestions on how to implement a more suitable diesel subsidy scheme that is more effective in preventing abuse and wastage, according to Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad.
The government will then announce the new subsidy plan in about 6 weeks time, with implementation to take effect in 6 months time. It seems that if the newly implemented diesel subsidy plan is found to work well, a similiar one will be cooked up for petrol subsidies as well, so both users of petrol and diesel vehicles should brace for some big changes in the next few months up to the next 2 years.
Any good ideas?
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i think the government should only subsidise diesel by retaining the current price and then give a quota of diesel to fishermen, so they do not try to sell or smuggle diesel out of the country. only fishermen or other industry requires more diesel, they should submit a proposal and an audit report, to identify if there is such usage. should the price of diesel rises, bus fare wont be rm2 for rapid kl anymore. people would most likely spend money paying petrol in the end of the day and would worsen the already congested roads in malaysia.
Kevin, actually the G already implement that for the fishermen. They will try to find loophole to make quick cash. Yesterday, Shahrir Samad also said they will try to implement the same mechanism for petrol. For the diesel, the study and the welcome suggestion from rakyat is in these 6 weeks. So, whoever have any suggestion please let this man know.
I don’t know how they can do this without lowering road taxes and import/excise duties on diesel vehicles. There has to be balance in the system.
Just removing subsidies will effect the everdayman badly, and in any case, quota systems have shown not to work and its open to abuse….usually to feed the already rich (look at the AP farce).
The government’s weighing scale is always lopsided (pun intended). The poor will always get the shot end of the stick.
On a related note, the Government finally admitted that inflation is a problem, even then the 2.8% figure thay gave is suspect….almost everything felt like it went up 10% this year already.
they are in denial of whats happening around them. only after the elections do you slowly start to see them admitting to problems they wouldn’t have admitted too previously.
i was thinking, if the G can remove road taxes and insurance, or at least lower it down to the bottom, so they can prevent abuse and wastage. got so sick of people with singapore and siam plate filling up to full tank here with our income tax money.
most of our problem is, i would rather say, The G weaknesses in law enforcement. if they can correct that, abuse and wastage shouldn’t be a problem. and that relates to bribery. and so on and so forth.
my 2 cents.
This is so typical of our bird brain authorities. Always taking the easy way out instead of wiping out the root causes of problems which I believed is the smuggling of subsidised diesel for certain industries which they are selling at rm1/liter. Two of the biggest ‘industry’ enjoying such pricing are the fishery and transportation sectors. Stats have shown that the fishery industry’s consumption have risen 3 folds without any significant increase in catch ever since this subsidy has been created and most of us are aware that 1000’s of boat owners has become oil traders. Such large scale ‘export’ could not have easily escape the eyes of enforcement people unless they close 1 or even both eyes!
The other big consumer of the subsidy is the your transport man…those issued with such cards can buy diesel from any normal pump at the price of rm1 irregardless of whether the lorry ‘jalan’ or not. Where does it end up? Factories using diesel to power their boilers and other heavy equipment.
So the solution is to clean up the acts of those enjoying the rm1/liter diesel instead of penalising the millions of innocent users who are paying 1.58/liter and yet have to put with the lop-sided road tax.
Alternatively, like our neighbours, introduce Euro4 ultra low suphur diesel and sell it at rm2+/liter and we can leave the crap diesel for the smugglers and anti-smugglers to sort out.
One issue I have with a diesel subsidy is the ability for the rich to use it when they fill the tanks of exxy diesel SUVs or the few Mercedes diesels sold here. Logic says that if a diesel subisidy is to continue, it should be for affordably-priced diesel vehicles, not luxury vehicles.
And talking of diesels, subsidies and the Government, what about the much-lauded biodiesel intititave? Where are the biodiesel pumps at the local Petronas servo? I thought this was going to help reduce the outflow of currency by allowing us to suppliment a percent of imported diesel with locally-produced palm-derived esters. Perhaps that’s less of a factor after last month’s wake-up call to Pak Lah.
MS
how do we respond to this RFP?
As we can mostly discuss on diesel and petrol price hikes, in fact we can also look into NGV. Even this natural gas have shortcoming e.g. lack of power, small fuel tank etc, however, given the lower price we can actually consider switching to use it.
Nowadays, driving school’s kancil have converted to use NG. According to one driving instructor I know, the bill has gone down by at least 60%. Though the conversion costs is about rm2500-2800 for kancil,
saving can be seen from 4th month onwards.
There goes my Actyon Sports.. or the D-Max… gone are my dreams of getting a pick-up truck!!! :O
Diesel engines are IN due to their fuel economy but why is the gov not supporting this?? Another ploy to protect Petronas ??
Then again, 20 years from now, Malaysia will diminish its fuel reserves… according to analysts.
That’s why Thailand is into CNG in their trucks! Dual-fuel technology should be here!
At the moment, it see ok, it looking for the suggestion from related industries or parties, it’s good.
At the same time, we “rakyat” will warn the government if they pick the wrong choice, i think the g must be very careful of this issue, now the people r all weakup already, dont be a stupid, to remove the subsidy at one time, if diesel can happend, for sure next turn is petrol after that NGV gas.
Make sure the enforcement team is doing they job, dont abuse the power from the “Rakyat” who select u as a ‘Ahli Parlimen” then after to “Minister”, remember this. Finally the right will from the Malaysian.
i’m really looking forward on how they would address this subsidy problem. removing the diesel subsidy would definitely means prices of goods would go up no matter how much the G say that it won’t.
also, i’m even more looking forward on how the G tackle the petrol subsidy next. if the reason for the subsidy removal is to remove the G’s burden in the tune of around 10-15 billion/year, i think it’s only fair for the G to help the rakyat in some ways or another..
for example, road tax removal is an option. so is putting the money more on basic needs such as food etc. affordable public transportation is a must here, and i stress affordable.
buy back of some of the highways is also a good measure. if you’re saving billions a year from the subsidy removal, paying 3-5 billion to buy back critical highways would be a big help and this would just be a 1 time payment, of course money need to be spent on maintaining it but hey, it won’t cost more than buying a highway.
looking forward to upcoming changes…..
no more petrol and diesel subsidy, remove road tax, and reduce toll prices as well?
I still want to drive my 9 y/o Ranger anyway…..
If subsidy for diesel will be not available at the pumps for private road users, than the G shud introduce the availability of latest euro4 quality diesel which is more efficient and cleaner to the enviroment.
The current road tax shall be reviewed, and the most important thing is to revised the tax and duty structure for privately registered diesel car/suv/mpv.. this may apply to all commercial vehicles as well., but i believed they got their respective associations to come up with their own suggestions.
When the price at the pumps is unsubsidised, these smugglers will be cut off from the cheap supply of diesel. Enforcement shud be easier as only certain places/resources is available with subsidies diesel.
The G also must took into the ngv/cng matter for consideration as well. Why until today, despite all the help and protection.. PROTON still doesnt have a factory fitted cars that can run with ngv?
Remove or reduce road tax, duty import, duty excise (the most noncense tax) for CBU unit vehicle, increase of road tax for vehicle more than 3000cc and above, that is call fair. Subsidy is not the area to save the cost, open the market, create more income from foreign invester,not only just cut the cost without any new income is call “end of the road”.
for those 4X4 vehicle cost how much? not even more than RM100K, how many units in Malaysia, if yes to reduce the subsidy, total how much cost can G can really save, then after inflation up, RM1 cannot drink 1 milo or kopi o panas liao.
Then FORD ranger, TOYOTA Hilux, Foutuner, MITSUBISHI Triton, ISUZU D-Max, MAZDA BT5, SANGYONG, TATA then fall another RM15K.
To be fair to all rakyat, there must be at least some trade-off if govt to sell fuel at real market prices:
1. Free-market for car industry.
2. Reform/ revise road tax, insurance based on CO2 emission (CO2 gram/ km) on top of engine capacity ruling.
3. Diesel cars/ SUV below 3000cc given revised road tax, insurance rates to make it lower and comparable to petrol engine cars.
Only this way, market will decide the best, clean and efficent cars to bring in the market which should include new generation of clean diesel cars, SUV and more hybrid cars also.
As for Proton, better hope or leave it dead as it serve no purpose whatsoever other than wasting more rakyat money into thin air. 20 plus years should be enough for such a failure and fairy tale joke.
shoot the fisherman who smuggles the diesel
i say, remove all excessive duties on cars..this will reduce the commitments for car payments for the rakyat..then remove the oil subsidies through stages and use the 30 billion savings to improve public transport, provide assistance to food manufacturers to reduce the impact of a sudden increase in essentials goods until the market stabilise..offer tax returns on trade in cars as the values will drop after the tax removal..it might take up to 5 years until things improve in regards to the auto market..thats where part of the 30 billion plus is used to cushion the impact..but, the insurance companies, AP holders, finance companies practically belongs to the politicians so we have to remove all the politicians first..he he he
but add excise duty to pickup trucks. look at singapore, for example, the mitsubishi triton is priced from SGD63,988 to SGD90,988 (Approximately RM153,354.92 to RM218,063.66). the pickup trucks must be more expensive and not cheaper than passenger cars.
GOOD WHAT NOW ALL THE DISELS TRUCKS ARE CHEAP. I CAN BUY A SECONDHAND JUST FOR FUN.
look at singapore, the diesel trucks are very very expensive there. singaporeans don’t like these trucks.
no need to tackle this diesel petrol problem first. fix up crime first. that is the main thing why they lost so many votes. but then again, they no need to fear since the opposition is miles away from competing.
i think abolish or reduce car duties and tax. and just implment a 5-10% import duty on imported cars for proton protection. (or maybe just abolish proton protection alltogether since proton is pretty much useless now in our own market and overseas market). fuel and diesel no need to subsidy. let market forces bring it down to the lowest level. the increase in petrol/diesel bills would never justify 50,000-100,000rm in car taxes anyway. open market will induce competition in car pricing and petrol pricing. once u do that, people will automatically go for fuel efficient cars and lower petrol prices.
use the money to fix up crime and public transport. as well as to educate the lower economic class people to improve themselves by themselves through good means other than crime. the rest of the world are losing a battle to crime. make that a defining point of the country and foreign income will come.
proton and petronas are duds holding the country back. do away with them. open up the car market and give the country a fresh start.
Do you know how much it cost to fix one pothole? An insider from a road concessionaire told me easily can earn RM400 for a hole just the size of a football field. Can u imagine for 1km of road leh? Re-surfacing? All this road tax money will got to repair roads. If everyone drive kancil…surely less damage on the road la. But some rich dude buy 4wd to show off…so heavy 1.5ton on the road but only 1 driver…for what??!
That is why the most fair system is Malaysia system…if u drive big heavy vehicles (some pick-up nowadays can even carry up to 2ton load)…you destroy the road more. Why make kancil users suffer repairing the roads which some rich dudes destroy??! Yet people still dare to complain about road problems when they only pay a tiny RM70 per year!! My goodness!! Sooo cheapo!!
I support the move to impose higher road-tax on big heavy vehicle! Let them pay for what they destroy!