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Over the past couple of weeks, the government has been thinking of floating the oil price because global crude oil prices have dropped. Suddenly everyone is excited again about the oil market.

When the oil price went up, the cost of goods and services went up. But when it went down, the corresponding drop in the price of goods and services was peanuts, if any.

For example, when the oil price went up, grated coconut shot up from RM1.20 to RM1.60 per nut. My trip to the Selayang market recently showed that it was RM1.50.

What the people need is a peace of mind. They want to be in an environment where the prices of goods and services are stable.

When that is achieved, they can plan their finances better - savings, retirement, vacations, investments, etc. How can this be achieved? By stabilising the pump price.

I believe the current pump price is still high despite the latest reduction few days ago. It should be about RM1.50 per litre.

But I believe that, even if global prices continue to fall, the government should not reduce the pump price. Instead, it should set the surplus aside in a fund. For now, let’s call it the ‘Malaysian Oil Fund’.

The government should retain the 30 sen per litre subsidy, but channel it into the same fund.

This fund should be used in the long term to stabilise pump prices, in particular that of the diesel, because the goods are moved by diesel-powered vehicles. We must take a long-term view and put aside reserves in case the global prices go up again.

I am sure there are many detractors out there but I have floated an idea - so what say you, BN government?

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