The rationalisation of fuel subsidies is unavoidable in developing nations including Malaysia, Petroleum Dealers Association of Malaysia (PDAM) president Datuk Hashim Othman has said, according to Bernama.
He cited as an example Indonesia’s plans to cut fuel subsidies by 3,000 rupiah (RM0.82) before the year is up, saying that the move, drastic though it may seem, will save the country a trillion rupiah in the short term.
The PDAM president added that the money saved from reduced subsidies could go into Indonesia’s transport infrastructure, including roads and public transport. The republic is facing a US$23 billion (RM75.48 billion) fuel subsidy bill – its biggest fiscal problem.
“For Malaysia, the move to slowly reduce the subsidy will neither shock the people nor cause a sudden change in the economic landscape. The reduction in stages… will also curb any sudden increase in the prices of goods and a slow down in demand,” Bernama quoted Hashim as saying.
Looking to sell your car? Sell it with Carro.
AI-generated Summary ✨
The comments largely agree that fuel subsidy cuts are unavoidable due to budget shortfalls and declining global oil prices, with some advocating for market-based pricing and removal of subsidies altogether. Many express skepticism toward government mismanagement and corruption, blaming it for the need to cut subsidies and impose higher taxes. There is a common call for reducing car taxes, excise duties, and crony profits to ease the financial burden on Malaysians. Some comments critique the government's reluctance to lower vehicle prices alongside subsidy removal, highlighting how high taxes keep car costs inflated. A few users mention that transparency and better economic policies are essential for meaningful progress, while others sarcastically criticize the government’s approach, emphasizing that subsidies and taxes should be managed more fairly and efficiently.