Commercial vehicles will no longer enjoy cheap RM1.481 per liter diesel from June 2011

Commercial vehicles will no longer enjoy cheap RM1.481 per liter diesel from June 2011Diesel drivers have been enjoying their RM1.80 per litre of subsidised diesel that can take them over 1,000km per full tank, but commercial vehicles have been enjoying their diesel even more – certain industries get super subsidies that result in a per litre price of RM1.481 for diesel.

If your business falls under these 9 categories, you’ve probably been enjoying super cheap diesel thanks to your subsidy fleet card – prime movers, general cargo movers, Luton box vans, vans, rigid lorries for bottled beverages, rigid tanker lorries for flour transport, rigid lorries for refrigerated goods, water tankers and limousine taxis.

I know for a fact that these subsidy cards can be abused and are being abused as I know someone who enjoys fueling his pickup truck with super-subsidised diesel thanks to a card that he got from a relative who runs a business that qualifies for the subsidies.

But when even RON95 and RON97 price hikes can affect the prices of goods and services that the everyday rakyat consume, what more a hike in the price of diesel fuel that’s used by these lorries that run everyday and perform services that are essential to the economy?

That’s exactly what the government is going to do – it announced earlier this week that it will be removing this super subsidy, which means everyone will have to pay the same RM1.80 per litre of diesel. That’s about a 20% hike in fuel costs, and the government will supposedly save RM659.3 million in 2011 alone from this action.

I wonder what’s the real situation with the government coffers right now as I consider this to be sort of an extreme measure relative to any previous subsidy cutting. The government has in the short term only resorted to removing subsidies for RON97, a so-called “luxury” fuel, and have promised to only revise the “everyday man” RON95 fuel every six months. They rarely touch diesel as diesel practically runs the country’s logistics.

Other than the fact that this might and most definitely will increases the prices of certain goods and services, there’s also the danger of lorries resorting to overloading to be so-called “more efficient” per trip. It’s not like they don’t already do that.

Read more at TMI.

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Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • C’mon Paul ….. you know of such abuse and you kept quiet !

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    • Lemon on May 19, 2011 at 12:10 am

      How do you know he kept quiet… Pfft

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      • Wisdom on May 19, 2011 at 11:07 am

        At least he is being sincere and put a note in his blog. Congratulation PT. U did good.

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    • dirtyoldmen on May 19, 2011 at 6:32 am

      well ….now that Paul has made it public info, you too know about it!
      So what are YOU going to do? Keep quiet ah?

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  • Vote modern govt, put ancient govt in history

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  • Nasrule on May 18, 2011 at 11:32 pm

    soon roti canai will cost at least RM1.20, minimum 20% markup from RM1 (average) roti canai price…sigh…

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    • rexis on May 18, 2011 at 11:46 pm

      Soon everybody will cook at home and bring out their tupperwares.

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      • Carl Wong on May 19, 2011 at 12:26 am

        That’s good actually, good for health, saves money and reduce the use of polystyrene containers, good for environment too :]!!

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      • if like dat, tupperwares price oso wil hike bro..haha

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    • fuel cell phone on May 19, 2011 at 7:09 am

      let see, this only shows that the buying power for majority of rakyat in our bolehland is becoming more restrained and dwindled, with our living cost increases at faster rate than our income

      we can definitely see and feel almost immediate domino effect when all this subsidy being taken away

      has our g really give a thought on this after effects, albeit all the so called potential saving as per their claim?

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    • i think this year our national inflation rate is gonna be at least 20%. thank you najis….the true bapa inflasi.

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      • alexpoh85 on May 22, 2011 at 2:25 pm

        y thumb down? it’s true. u f*uckin UMNO supporter can go eat najib’s najis. From the day he became PM till today, seriously i don’t see any major development to our country, except for its 1Malaysia propaganda, rakyat didahulukan kononnya, screw it man.

        seriously, I really don’t understand where do all the rakyat’s money go. We buy cars with such heavy tax, income tax, land tax apa-apa tax bla bla bla, wit our country so rich in resources getah kelapa sawit crude oil natural gas and bla bla bla, all these sum up not enough to develop the country properly?

        To hell with the subsidy expenses will be doubled next year, i was like WTF??? Our population suddenly increase two fold as well? Common sense ppl, this fat ass retarded moookidin really juz make up the figure. I would of cos blv subisdy expense will increase as year goes by, but double the amount in comin year? plus wif all the measures to slowly cut off subidy in food commodity n energy source? It f*ckin doesnt make sense at all.

        what really make sense is, UMNO cronies are gettin greedier n greedier, n more n more of their ppl or ppl related to UMNO wan a piece of share of the cake. they no longer care bout the future of tis country anymore. These cronies when they see the country falls, they will be haunted by all the guilts forever and will never hav a happy life, hope they go to grave along wif the hefty guilt they feel n may them go to hell n be punished to maximum. THese UMNO cronies are criminal in disgust. Nuff said.

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  • droll on May 18, 2011 at 11:38 pm

    oh no!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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  • ilovenaik on May 18, 2011 at 11:40 pm

    “… Sebenarnya, darah saya sekarang ini tengah panas ni. Ini bukan main-main. Darah saya tengah panas, bulu roma saya sedang tegak ni… “

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  • Paul Tan for Prime Minister on May 18, 2011 at 11:43 pm

    Coke at some hawker center is already at RM 2 and teh ice is already at RM 1.8. Housing BLR has just been revised ! Beware, The next wave of inflation is going to be — Super-inflation !

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    • the suprise is that the G will later announce the inflation rate actually is only 2-3% and the saying that they did controll well on this and meet the target… well done….

      phuuuuiiii…… their figure always siok sendiri but not reflect the actual condition…

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      • This is a double whammy as most companies especially MNCs will use the official inflation rate to make decisions on salary increments.

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      • Emmeth on May 19, 2011 at 10:20 am

        And then refute World Bank, IMF and whatever international institutions’ reports are inaccurate.

        What “pencapaian diutamakan” if not world class benchmark? Don’t tell me high income will use another local benchmark, RM3,000 monthly salary perhaps?

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      • Edward on May 19, 2011 at 12:31 pm

        Actually the CPI index is taken from a pool of basket of price of goods sold in the country. Guess wat, our goods that are chosen in the basket to determine CPI de is all control priced item hence the inflaion rate managed to keep it low.. lol

        now tat is some clever economics

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      • profiler on May 19, 2011 at 5:15 pm

        ofcourse…. price go up but you still survive…..very minimal people go bankrupt..itu pun because too much spending on Credit card… it shows inflation is very low

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  • LatukBandar on May 18, 2011 at 11:44 pm

    They are building their warchest for GE13. My friend who is not into politics or any social issues worked for a crony company, he told me BN is asking ‘donation’ from these cronies, which his boss happens to be one of these long list of cronies.

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    • droll on May 19, 2011 at 6:37 am

      that’s what i think too. it is suicide to increase prices and burden the rakyat when GE is close unless they have no $$$ for GE. so they are forced to do this. i think they will wait as long as possible before calling for GE so the rakyat will “forget” about this increase. sigh.

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  • rexis on May 18, 2011 at 11:51 pm

    Palm oil stock shooting up + price falling + oil palm harvest season.

    So we gotta burn off some of the old stock.

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    • Greener world on May 19, 2011 at 6:26 pm

      Biodiesel B5 is key answer to tackling problem and polemic relating current issue.

      http://www.fueleconomy.gov/feg/biodiesel.shtml

      ‘A Green New Deal’ – How Green Technology Can Spark Economic Growth –

      Newsweek

      http://www.newsweek.com/2008/10/24/a-green-new-deal.html

      ————————

      DASAR BIOFUEL NEGARA

      http://www.kppk.gov.my/media/dasarbiodiesel.pdf

      Malaysia unveils plan to build ‘green economy’

      http://news.yahoo.com/s/afp/20110518/sc_afp/malaysiaenvironmenttechnology_20110518073942

      ————————–

      I hope ‘we’ – all Malaysian will be able to understand why our present government are willing to take this drastic measure.

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    • Greener world on May 19, 2011 at 6:53 pm

      Green New Deal

      The Green New Deal is a proposed set of policy proposals that aims to address global warming (the current climate change), and financial crises.

      The Green New Deal | the new economics foundation

      http://www.neweconomics.org/projects/green-new-deal

      The deal new green new deal group

      http://www.greennewdealgroup.org/

      A ‘Green New Deal’ can save the world’s economy, says UN

      http://www.independent.co.uk/environment/green-living/a-green-new-deal-can-save-the-worlds-economy-says-un-958696.html

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    • Greener world on May 19, 2011 at 7:18 pm

      APEC Speaks: how Asia-Pacific economies plan to address fossil-fuel subsidy reform

      http://www.globalsubsidies.org/subsidy-watch/commentary/apec-speaks-how-asia-pacific-economies-plan-address-fossil-fuel-subsidy-ref

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      • Na Na Na Na on May 23, 2011 at 11:42 am

        Just because our government are very mindful on environmental issue and try for about-face into – “new economic model” – various prejudice, abusive word and thumb down were received by them.

        Hehehehe – funny

        (Whatever lah..)

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  • transformer on May 18, 2011 at 11:51 pm

    transport sector will be badly hit by this announcement… PAN Lorry will strike back by increasing price….. not forgetting courier sector too….. when transport hike price, goods price also affected, material price also… its a whole chain of supply will definitely affected by this drastic measure…..

    ” hari itu gula +20sen, condense milk pun naik harga….., lagi anak saya yg belajar di MARA, biasa bayar Rm1 sehari untuk makan, awal bulan Mei, kena Rm3 sehari…. bukan ke Gomen subsidy ke..??? ” my beloved cikgu mentioned in class this morning…

    all these drastic measure means Gov vault are already empty…. too many BOCOR…..

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    • fuel cell phone on May 19, 2011 at 7:14 am

      it clearly shows, u fill one hole by opening many holes

      now, that our g retroactive measures “as a whole” !

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    • 4G63T DSM on May 19, 2011 at 9:52 am

      No it wont. Asa manufacturer. I know that the traport company would simply just pass the cost to the manufacturer or consumers. Unless the have a longer term conntract, even then they would usually have a fuel increase clause in there somewhere.

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    • alexpoh85 on May 22, 2011 at 2:30 pm

      well said, really got alot of bocor in our G vault.

      the question is, WHAT THE FUCK is BPR doing????????? I believe they’ve already blended in with the UMNO cronies and have their own share of cake as well. No longer they are as neutral as ph5.5.

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  • transformer on May 18, 2011 at 11:55 pm

    also today when i buy a pack of “Rocky” its already Rm1.80, usually Rm1.60… when i asked, shop owner reply “supplier’s lorry no more diesel subsidy, so naik-naik-naik…., and i small shop no keep stocks a lot, when purchase price increase, our selling also increase lo….”

    * p/s : heard Cloud9 also hike la…. so faster pile-up your stocks early…..

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    • who on earth buys rocky? buy pocky you fool!

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    • rexis on May 19, 2011 at 11:46 am

      Each box of rocky need to spend RM0.20 more transportation? Are they using helicopter to deliver it?

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  • veryWrong on May 19, 2011 at 12:07 am

    THis is very wrong. Malaysia is exporter oil. Google Malaysia export vs import oil ! Even currency increase. Malaysia as a while still gain !

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  • lightning mcqueen on May 19, 2011 at 12:08 am

    What ever gov do… those greedy businessman will still rising up the price of the goods. We as user should start to start boycott certain popular brand items to tell those companies that we as consumer has the power… shall we start by stopping buying bottled drinks and instant beverages & start to drink plain water instead?…

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    • Wisdom on May 19, 2011 at 2:13 pm

      These greedy businessmen were the one who driving merc and refuel using subsidy card. This morning they have started to increase their transport cost.

      I agree with your suggestion. Plain water even better for our health too…

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  • losantara on May 19, 2011 at 12:17 am

    Mismanagement in government policies will increase stress among the working class. My observation after working in the luxury line for the past couple of years:

    Working class lifestyle

    – keep renting a room because cannot afford a home
    – budget their lunch because of money
    – spending an extra 15 minutes traveling just to avoid a RM 2 toll
    – stay at home during weekend (surfing internet) because not much money to spend
    – always look for best deal in shopping, mobile plan and ect.

    Upper class lifestyle

    – have multiple properties (now the hottest investment spot is UK weather you believe me or not)
    – visit luxury restaurants with family members during weekend (Rakuzen, fourseason, shangrila)
    – multiple cars (go to bukit damansara/tropicana/country heights and see yourself)
    – overseas trip during every school holidays
    – own the latest gadgets (apples, luxury cloths, you name it)

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    • alamak, dun lah sour grape like that – soon you’ll be complaining bout taib having a young wife

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      • Edward on May 19, 2011 at 12:37 pm

        It’s not abt being sour grape.. it is a dam cold hard fact of reality going on right now…

        i am one of the middle working class who felt the pinch as well. transport go up another thing wil keep going up also.. HOUSING price.. y?? contruction material delievery cost also go up mah..

        and we buyer who always kena the mitigation of price hike or rising cost…

        few years down.. the rich will be richer… middle class who cant survive / barely survive will be poor.. poor will be poorer…

        kudos!!!

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  • Gavin on May 19, 2011 at 12:19 am

    FUUUUUU….

    NOW prices are REALLY gonna increase SUPER HIGH!

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    • wait till the G give the final blow by implementing the GST….by then your teh ice will cost at least RM3 and chicken rice RM8 at hawker. construction cost will skyrocket and the middle income ppl will need to live in low cost flats since an average apartment in klang valley will cost you 300k

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  • Yup… I received the news too. My lorry and van won’t enjoy any subsidized diesel from next month. Oh well, have to increase transport cost to 20% next month. So, if my transport cost is RM 500, it will be RM 600 from next month.

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    • Polis Internet on May 19, 2011 at 12:38 am

      You charge people RM 500. Your cost is only RM 200 of less. Buddy hell you increase your price by RM 100 !!? Nanti I tangkap lu lu baru tau !!

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      • littlefire on May 19, 2011 at 11:36 am

        U have to think even futher.. If fuel went up, other spare parts also will went up also.. have u ever heard that those lorries spare parts cost cheap? If went for original? Even those second grade ‘parts’ are getting the hike…

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  • Well, it signals another round of price hikes is around the corner, and the Ministers from the relevent Ministries will come out and warn (as usual) the traders that actions will be taken against them if they transfering the cost to the consumer, but price hikes remain everywhere………………with variety of taxes paid and sky high revenue earned by selling petroleum & natural gas every year, it seems that it only benefit the UMNO & its cronies in the ruling BN Government & also its business affiliates.

    Is that really a small country like Malaysia with 27 millions of population with variety of valuable natural resources is so difficult to administrate? We have the biggest cabinet line-up, biggest Government servants line-up (ratio to population), biggest parliment line-up (ratio to population) and etc ……………. but it seems that it is not benefit the Rakyat and only increase the public expenditure.

    It is estimated the Government have employed up to 1.2 million of civil servants (correct me if I am wrong), let say each of the civil servant is paid RM2500 per month (most conservative estimate), the Government has to allocate RM 3,000,000,000.00
    or 3 billions per month just to pay their salary (excluding bonus). I am not saying that those civil servants are not deserve for this money, but the reality is this small country is not deserve for the quantity of civil servants employed.

    To the ruling BN Government please show some mercy to the Rakyat. show your commitment to revamp the administration systems available which are poorly established, eradicate poverty, address corruption, restore jurisdiction, improve transparency, attract more FDI etc to bring this beloved country back to the right track.

    The wind of change is blowing around the world right now and soon………it will be here.

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    • Well said TMH

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    • fuel cell phone on May 19, 2011 at 7:34 am

      while i tend to agree most of ur points, except for the salary for all the civil servants :-)

      yet, with high integrity and prudent cost management, a lot can definitely be be saved from managing the government (no cronies, open tender, project for rakyat benefits, empowerment of sprm, and the list goes on)

      on the contrary, while the g can “easily” decide to remove subsidies meant for rakyat, how about removing or significantly reduce subsidies for all the ministers, cabinet member, etc

      let rakyat know how much saving would that be and that the rulers are together with rakyat

      rakyat do not select the g as the master but instead… as servant to the rakyat !!

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    • VoidDance on May 19, 2011 at 8:56 am

      This I agree wholeheartedly. I mean, there are such a big waste employing 1.2 millions civil servants. I work in a gov. dept., I should know. In my office, there is a person whose job is to handle a very small store. That is his only job. And he even request that if someone what to ask for something from the store, they can only do it on Wednesday as per regulation. I mean, WTF! What he do for the rest of the week?

      Ops.. sorry menyimpang pula.

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      • PakAbu on May 19, 2011 at 10:25 am

        In a certain socialist country, only a member of the communist party can do that.

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    • Paul Tan for Prime Minister on May 19, 2011 at 11:51 pm

      Actually your number is quite correct. I remember the salary for the government servant is approx 50 billion a year. It is announced every year during the budget proposal (belanjawan).
      I also remember the ratio of government servant to population:

      Malaysia is 1 to 21;
      Singapore is 1 to 63

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  • sukasuki on May 19, 2011 at 1:09 am

    yeah, damn. our ministers are useless. all of them get their degree by online. just pay $$ and get ur scroll. not only ministers, all our MP’s are useless.

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  • Imran on May 19, 2011 at 1:20 am

    there will be a very big gap between the lower income (mostly government staff) and upper income group (mostly government contractors/cronies that cheat income tax)…

    In france, socialist liberal country, the income difference between a manager and a clerk is only a few thousands euro a month… maybe around 30% only…. because they have very strong workers union…

    seems that malaysia becoming worst especially for lower income groups.. you will be beggars in your own country!

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  • Carl Wong on May 19, 2011 at 1:26 am

    Like I said in the previous post, QUIT SMOKING!!!

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  • mokhtar on May 19, 2011 at 2:13 am

    Desperate times requires desperate measures.
    How about to stop/delay all military spendings until we see better times.
    1) 7.55bil contract to DRBHicom to supply 257 armoured vehiecles.
    2) 6 bil deal with Boustead to buy 6 offshore patrol vessels
    3) 50 mil a year to maintain 2 Scorpenes submarines.
    Maybe Pemandu will propose a 10-12 year car installment plan
    to lessen the burden of the rakyat !!!

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    • You have yet to discount the controversial EH-101 Helicopter purchase as well as the fighter jets. A few billions there.

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  • GeeGee on May 19, 2011 at 3:48 am

    Ok. Ron97 goes up. Ron95 being revised. Diesel cut 20% subsidy.

    What’s next? Increase imported car tax?

    I am anticipated for next year’s GE. =D Expect lots of drama from government.

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  • This removal of super subsidies has been a long time coming. Just wonder if the government would also remove the super subsidy for the fishing industry as well. This would directly impact on the price of fish and seafood in an instant. The fishing industry super subsidies are also being abused with news of re-selling it to other non-fishery users and smuggling have been seen from time to time. Is the government coffers that bad as most have predicted? Guess it must be. But do support the removal of subsidies and let the real world economy dictates the prices. It just taken the government 40 years to realise the destructive policy of subsidising.

    I recalled the article by the just ex-Human Resource Minister who has laid out the history of the subsidies and price control to the detrimental of real wages earned by Malaysians. He clearly laid out that it is a deliberate policy by the then government to keep wages down in pursuit of growth in the manufacturing sector to attract FDIs. Since 1970s, the government introduced price control to artificially keep essential items low so that CPI will reports a low inflation thus impacting the increments. There is a chart showing the disparity of the real world wage vs the subsidised wage over the 40 years. We all enjoyed the subsidies but we are only now paying for it. It is like being addicted to it for so long. The withdrawal would surely be painful. Here is the link to that article:
    http://thestar.com.my/news/story.asp?file=/2010/2/7/focus/5614419&sec=focus

    One question is why only after leaving the government that such article was written? No need to answer as it is a rhetorical question. It just goes to show, they all know it but dare not to do much about it.

    Another food for thought. If you were to travel north of Rawang along the old state highway to Ipoh, you will see hundreds of buses lying on the left hand side in wide open land. Some are still looking in good condition but just lay there. This is our own version of the plane mothballed in the US. Some grapevines mentioned that those buses are there for a reason: the fuel super subsidies! Each bus are allowed a X amount of fuel per month and the more you have, the more super subsidies. Those buses are “decommissioned” for all intents and purposes but never been taken out of the system. Add new buses in and more subsidies. Easier to make a tidy profit on the difference between price at the pump vs the super subsidy. Go ahead and count the number of buses there. It is not the only site too!

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  • mujahid on May 19, 2011 at 8:33 am

    those who selling back subsidized diesel also need to blame…. they can earn RM 4k per day….

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  • cinta mleayu on May 19, 2011 at 8:33 am

    made RON 65…lepas ni kasi letop kereta

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  • fariz on May 19, 2011 at 8:38 am

    we are producing more oil than we consume, we are exporting more oil than we import, how can our oil price be so ridiculously more expensive than other oil producing companies? the government has a really bad financial management due to…..go figure…

    http://mazamascience.com/OilExport/

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    • aiya, the govt cronies export m’sian petrol so that can give themselves the money…then m’sia import petrol for rakyat’s comsumption n rakyat pay for petrol and also the subsidy (since come from taxpayers money)

      see the reason now!!!

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  • What next?? Ron 95?? Believe it!!!

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  • maserati on May 19, 2011 at 9:12 am

    And you guys are still voting them into power? Pls wake up!!!

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    • TFazuin on May 19, 2011 at 9:58 am

      Voting is one thing, who actually facilitates the sale, is it the politicians or the existing business… So yes removing the subsidy will plug the loophole.

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  • TFazuin on May 19, 2011 at 9:47 am

    I agree for the removal of the subsidy, its a hard thing to do but it has to be done. We all know real wages has not risen since the fresh grad’s salary in year 2000 is still the same in year 2011 and if you compare out of KL say in KK or Kuching fresh business / engineering grad rarely make past 1.5K. Today my organisation that I work for pay 3.0K for a diploma holder to do document scanning only but of course this is the MNC’s salary but this should be the minium salary a Diploma Holder should be paid. The middle income trap is real, if you look at jobs with salaries above say 8K/month its far and few in between except for specific industries. Food, Housing has increased and business as well as individual speculators are only making things worse. My officemate a typical penang mari one has bought and sold 4 propeties in a span of 1 year and made about 150K-200K in profit and at the same time contributed to driving up the prices of affordable property. Its within his rights to do so, but each individual action has its impact. Its a problem that we all share the blame, profit nak banyak, x mau timbang rasa, so in the end why should anyone care kan? Fuel costs accounts for only 30% of the vehicle’s operating costs, but most will increase the whole 20% of the rates and pass to consumers. We don’t care what we do impact others, all we care its time to make money since that’s the motto of the business sector. Other than household appliance, tell me honestly has there ever been a price revision downwards for anything at all in MY? I rest my case…

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  • Unforgiven on May 19, 2011 at 9:54 am

    The G should just do it the fair way and fight the abused… just do the right thing…

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  • nolan on May 19, 2011 at 10:38 am

    OMG…my business surely effected by this move….cukup tahun gulung tikar then PRU 13 i gulung Government !!

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  • Just_Once on May 19, 2011 at 10:47 am

    This blog always report the fuel price increase, which is good.

    But could you help us to adapt to the situation??
    Please help us with your proactive counter measure such as,
    the suggestion cheaper and clean way for daily commuting or review
    on motorcycle and car travelling cost?

    Fuel price cannot stay the same forever.
    Anyway, this is 100% motoring blog forever….

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    • what do u expect from paul? he is not a politician, you are asking him for this? why not the gomen who get paid from us????

      paul is doing this for free.

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    • openeye on May 19, 2011 at 12:32 pm

      help us to adapt situation, common sense ,….change effective GOV that don’t waste rakyat $….currently GOV guarantte “tak boleh pakai”

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    • Paul Tan on May 19, 2011 at 1:55 pm

      My first advice is to quit smoking. You’re easily burning RM300 a month away if you smoke a pack a day. These days I find it more surprising to meet someone who doesn’t smoke rather than someone who smokes.

      Anyone can do things like “10 ways to reduce your commuting costs” but in reality there’s not much to be saved as our public transport system is just not comprehensive enough. For example my place in Shah Alam, there’s no bus, train, LRT, MRT, or whatever. Most of Shah Alam is like that.

      The government seems to be interested in servicing developed areas only, whereas many first time buyers in the young workforce is being pushed to areas in Shah Alam like Kota Kemuning, Setia Alam, or other areas like Bangi, Serdang, Rawang, Puchong, etc.

      In the end, we still have to use cars.

      Our team is handling these increasing commuting costs in different ways. Harvinder and I have both switched to diesel sedans. 1000km per tank. Anthony downgraded from a C-segment hatchback to a B-segment hatchback, albeit still petrol powered.

      We realise that the cheapest diesel passenger car is still above RM100k (Focus TDCI) so we actually try our best to lobby to car manufacturers to offer cheaper diesel models. For under RM100k, you have the Honda Insight, but still near the 100k mark. We need more fuel efficient cars at a lower segment.

      When you use a diesel or a hybrid car you are less affected by rising per liter costs as each liter of fuel goes further, so the percentage of cost per km of each increase is smaller. But then, because of the negative stigma surrounding diesels, you end up losing out if your car depreciates faster than a petrol car. Luckily, the new BMW diesels like the 320d doesn’t seem to suffer from this, but a luxury BMW is completely irrelevant in this situation where you’re thinking how to reduce costs.

      Everything got pros and cons, and we’re quite stuck lah because THE ROOT OF THE PROBLEM is our low average earning power.

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      • Naji$ on May 19, 2011 at 7:53 pm

        Nice said Paul. Totally agree that our buying power is very low. and the root problems of G.

        Naji$ still said we are on the way to become develop country. LMAO.

        Btw, I cannot save from smoking since i dun smoke. lol

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      • Kumar san on May 20, 2011 at 9:51 am

        Agreed Paul.Cheers.

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  • rexis on May 19, 2011 at 11:55 am

    Maybe its time to reveal what is the profit margin our transporters are earning.

    If a transporter spent RM500 fuel to deliver a container of 1000 can of sweeten milk to the supermarket. So now it has to spent RM100 more due to the hike, which means each can of milk have to pay RM0.10 more as cost.

    And let’s say each can of sweeten milk can make 10 cup coffee, and that is RM0.01 more cost per cup of coffee.

    Ok, if you insist that sweeten milk is not the only thing that hike, then I give you RM0.01 for coffee, RM0.01 for water, RM0.01 for the cup, add more milk RM0.01, the max your cost increase by RM0.05.

    No freaking way that you can even increase 10 cents.

    Congratulation for all the good business and economy figures due to this artificial price hike! The first thing we need to do is not voting out the gov, but voting out those black heart coffee shop!

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    • you are forgetting about the chain reaction effect. when diesel price is increased, not only the transporters transporting your condense milk’s fuel cost increase. their maintenance increase a lot as well. the lorry spare parts increase, lorry tyre price increase because the cost to transport the tyres increase. engine oil increase, battery increase etc. even the lorries that transport the spare parts/tyres/engine oil also have increased maintenance cost…
      these bills care not cheap…..and in the end all the increased cost in just simply passed on to us rakyat. ( rakyat diutamakan)

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  • PoorMalaysian on May 19, 2011 at 12:31 pm

    The 2nd half of year 2011 will be huge change in price hike.

    Previously, sugar, rice, fuel, gas, Credit Card Gov Tax, electrical bill, water bill, highway toll and etc….

    What next? Electrical Bill? GST???

    As long as the G no money, they will think of many reasons and ways to increase the price. Who will suffer from all these? We….. the poor citizens.

    Soon will be more security issue can happen due to many low and medium income group hardly survive with all these sudden hike and most of the items are affected.

    G….. are you really study, survey and listen to the “Rakyat” before announce or make any decision of price hike?

    Is this the real meaning of “Rakyat Diutamakan”???!!!

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    • yeah…robbery and theft rate will definitely increase as many cannot cope with the overall price hike…then the G will say they need more money to build new 10 billion dollar prison and hire more dirty cops….. so they have no choice but to raise tax and fuel prices again and again next year. sounds familiar?

      in the end the low income group will end up in prison or become beggars, the middle income will become the new low income group. the rich( barang naik cronies ) however will continue to drive around in their porsche and live in their luxurious 5 million dollar klcc condos.

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  • MouMouRen on May 19, 2011 at 1:09 pm

    East Malaysia will be more suffer and suffer if super subsidies be romove .Damm. We East MAlaysia still depands Lorry lah. Oii GOV, wakeuplah. come n see urself at here lah. The road at EAST Malaysia still very bad lah. Ur West Malaysia still have highway and train. We as RAKYAT will suffer because of GOODS and SERVICES increase. Go ahead and increase everything. U GOV make the new GENERATION suffer only. 1Malaysia!!! Forget it!!!!!! 31st Ogos Merdeka is NOTHING, DON celebration and no Malaysia flag at my front gate….

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    • hantu on May 19, 2011 at 2:03 pm

      I think Sabah and Sarawak should separate from Malaysia. Its my suggestion.
      Its so lucky to Brunei because their not joining Malaysia and if Brunei is joining Malaysia what I can say is Brunei is still same as Sabah and Sarawak.

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      • sukasuki on May 20, 2011 at 11:06 am

        yeah, then Sabah n Sarawak will become among the richest country. hell yeah, do u know Shell n Petronas is looking for the oil and gas inside Sarawak mainland?

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    • Naji$ on May 19, 2011 at 7:43 pm

      Then Please larr…….Dun vote Barang Naik BN anymore.

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    • Well majority Sarawakians overwhemly vote for BN as shown in the recent Sarawak election.. So in a way you guys are contributing to your own predicament..

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  • HotSoup on May 19, 2011 at 3:42 pm

    One thing regarding the removal or subsidies that i am especially apprehensive about would be where the money goes. Its ok if all of the money saved derived from the removal of the subsidy is used for nation building. Instead i have this nagging feel that somehow, these money will go to the pockets of the undeserving. The corrupted. OR the money goes to government civil servants that do nothing much more than sitting around in offices all day, delaying work because of the alleged “red-tape” . In my opinion, its just some creative bullshit excuse to skive off.

    Once again, another thing i am baffled by. The government seems to consist of ministers that seem to lack common sense, and the necessary intellect required in running the country. I visit this blog rather often and sometimes, the comments i see from the masses (albeit some rather coarsely put across) makes infinitely more sense than what the ministers/ government officials have to say. Supposedly the masses are to be governed by those that are deemed to have more sense and intellect than the regular people for the greater good. In this case, i see that this bunch of people arent exactly the brightest lot. It seems that our country is doomed if it continues like this.

    EG to illustrate the logic of these ministers. You guys may remember the bullying incident of a local girl, and the measure seemingly proposed by that of our beloved education minister was to ban mobile phones. W-T-F? I understand his case, that these events could be spread like wildfire and others would emulate the behaviour. But hell, if it werent for cell phones, the incident wouldnt even come to light. I believe the the pros outweigh the “assumed” cons. And I really do not understand the rationale of banning HP in the normal classrooms setting in the first place.

    A gradual removal of subsidy is acceptable. Unlike this measure and the recent RON97 revision. It’s plain retarded, to be exact. A 20% hike in costs in this case is a helluva thing. Even if the G wants to remove subsidy because some things so desperately needs funding, they could do it gradually.

    Being a malaysian, I feel so helpless in my own country. I am studying overseas and i just came back not long ago for a break and it hasnt been too long ago since i started finding out about politics here. It’s a joke, to be put across bluntly. Resorting to name callings? Smear campaigns? For god’s sake, our country is managed by people like this?

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    • Kumar san on May 20, 2011 at 9:47 am

      I agree with you HotSoup.This country of ours is destined to be doomed for sure one day if it’s run like this,a backwater retarded way doing things that matter to the people at large as i call it.

      I have said many comments of similar nature just like yours albeit mine was simply coarse and to the point.

      It’s appalling and sad to say the least,the only way a change is certain is when the voting public goes our during GE and votes them the hell out..

      The stuff that they do and the comments that they say really sound like they have thier heads up their asses right?I was in the U.S for 12 years-Got educated,worked there for sometime and then came back thinking my country offered greener pastures,boy was i wrong and now i’m really starting to regret my decision.This is absolute bullshit.You know it,i know it,everybody here knows it.We can instill a change,and that’s during the next GE.If you vote,please exact that change wisely.

      Cheers.

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  • Oh No on May 19, 2011 at 3:42 pm

    This is bullshit. Government Barisan Nasional already crazy. Budget already finish at Sarawak election, than u increase all. Bullshit BN (Barisan Najib)

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  • openeye on May 19, 2011 at 4:36 pm

    think deeply..all our misery is cause by ppl here (you) that vote BN!

    $60 billion for LRT that only serve KL/PJ area! how bout other state?

    lastly, bangsa Melayu suffer the most..Melayu population is the largest in Malaysia..not Chinese..not India..

    and nobody realize Melayu is the top 1 majority poor in Malaysia …

    june increase.. then sekelip mata, dec arrive n increase again….sigh for Malaysian and myself

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  • hayden on May 19, 2011 at 6:54 pm

    suddenly the taste of IKAN SARDIN becomes very SEDAP! =)

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  • Sleepwalkerz on May 19, 2011 at 9:10 pm

    Can we have all the ministers pay their own fuel cost when they travel?drive their own car without escorts so that they can feel what do we feel when we are stuck at traffic jams?they just need to feel what we feel…

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    • i can give the minister my kancil for them to drive and let them feel, how to drive in that tiny moving box!!!

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  • 4g13p on May 21, 2011 at 9:20 pm

    BN got alot of money laaaa….non executive staff get 6 month bonus…no wonder laaaa

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