Malaysiakini Yoursay

Yoursay: Fluctuating pump prices will fuel another round of inflation

Yoursay
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YOURSAY | ‘The government must come up with a much better plan.’

RM30 for cars, RM12 for bikes - new fuel subsidy scheme starts Jan 1

NNFC: I sincerely hope that the government is aware of the real issue that affects most Malaysians, which is the spiralling cost of living.

Does the government not realise that each time the petrol price changes, it affects our cost of living?

Businesses or retailers use the uncertain petrol prices to their advantage and this affects the price of products that we buy.

We have been experiencing this for several years now and we have not been offered an effective solution to this problem.

I don’t think that the RM30 petrol subsidy will do much good. I strongly suggest that the government come up with a better plan to help Malaysians overcome this problem.

Ipoh PP: I wonder if the government knows that without the subsidy for the RON95, its price will be determined by oil prices on the world markets. Likewise, the RON97 will also be affected.

The government’s “no subsidy” decision for RON95 is going to cause a general increase in transportation costs.

I am also confident that this increase will inevitably be pounced on by businesses that deal with consumable products such as restaurants, medicine and raw materials suppliers.

Come Jan 1, 2020, we can expect a series of price increase soon after it has been officially implemented.

It has happened before and this will continue until the government deal with the issue properly.

Solo: Malaysia has its own oil, doesn't it?

If this is the case, all motorists should get the benefits of lower prices compared to countries with no oil production.

The price of petrol should be the cost of production, not the world market prices that Malaysia charges other countries that buy our fuel or petrol.

On top of that, how is RM30 going help Malaysian road users in the long run?

Anonymous_1543475877: I am sorry to say but this announcement for me seems like a ridiculous scheme. This is only going to cause confusion and complaints among Malaysians.

There are several questions that I would like to ask the government.

First of all, how did you come to get this figure of 2.9 million people? What is the breakdown of the type of vehicles? How many have cars and how many have bikes? Some Malaysians own both vehicles.

And what happens when the motorcycle user switches to a car? Does he or she have to fill up more forms? What happens when the vehicle owner dies? Does the subsidy go to someone else?

I am sure everyone would like to know the answers to these questions.

Evin K: This new fuel subsidy scheme, at the very least, should be extended to all students and senior citizens.

Public transportation in this country is a far cry from other developed countries, particularly Europe, and until that is fixed, burden easing subsidies must remain a priority.

It is disappointing to see that fuel prices have not reduced to a level that is felt by the rakyat, even after all those promises that were made prior to GE14. It really looks like we are heading back to square one come end of 2019.

Most of the Bantuan Sara Hidup recipients are from rural areas and my own personal opinion is that people from these areas are not Pakatan Harapan supporters.

In Malaysia, issues such as fuel prices and toll charges matter very much to the people, to the point it can make or break general elections. The Harapan government must tread lightly or face the possibility of losing GE15.

Not Giving Up On Hope: We were promised that the fuel prices will come down gradually to a more acceptable level during GE14.

Now, a scheme is devised so that the prices can go to RM2.20 or even much higher. This would be higher than it was during the previous BN government.

I really hope this current government can find a solution fast and help us overcome this issue as uncertain fuel prices are a real burden to us.

Anonymous_1371463676: I think it’s fair that only those really in need gets the subsidy.

With this new implementation, I hope the public transport can be improved and eventually our carbon emissions can be reduced.

The Analyser: It’s the same old story over and over again.

Subsidies are not sound economic policy because they create an artificial environment which invariably will end in tears.

If you must subsidise anything, subsidise something that will increase production such as fertiliser.

This obsession with subsidies has its roots in three odious aspects of government:

- the need to keep the poor, poor and dependent

- the inability of governments to think of more effective ways of addressing poverty

- pathological selfishness

And if you need some suggestions, try some of these ideas:

- education to improve food production

- training to develop home-based industries

- set up cooperatives

- self-organised food banks

Wira: Apparently, the present mechanism is too costly to the government.

However, I have a suspicion that these ministers are clueless on price mechanisms. They are only thinking of targeting direct subsidies to the poor.

They have probably forgotten how prices went up when former prime minister Abdullah Ahmad Badawi withdrew fuel subsidies and floated fuel prices. The merchants reacted with a round of inflation which remained after the float was withdrawn.

If that were to happen again, I wonder whose heads are going to roll?


The above is a selection of comments posted by Malaysiakini subscribers. Only paying subscribers can post comments. Over the past one year, Malaysiakinians have posted over 100,000 comments. Join the Malaysiakini community and help set the news agenda. Subscribe now.

These comments are compiled to reflect the views of Malaysiakini subscribers on matters of public interest. Malaysiakini does not intend to represent these views as fact.

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