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Wednesday, June 4, 2008

Petrol Prices Plan By Government: Protecting the Corruptors

Bear in mind, that the phrase “expensive to the government” means “less money for cronies and “rent seekers” in UMNO. There’ll be less money for th 4th floor boys and the family of Pak Lah to squander, there’ll be less money for expensive but useless projects to make BArisan Nasional cronies rich, there’ll be no more money for useless and wasteful joint venture projects like the one recently exposed by MB of Selangor and many, many more examples.

Malaysiakini reports that the government is planning to raise the petrol prices of the country to market level (RM4 per liter). It seems that the government is planning to introduce a completely different system of subsidy distribution. Even though the details of the plan is still unclear, we Malaysians should be very worried.

I also do not understand why there is so much noise about the oil subsidy being a wastage. Our government wastes much more on corruption, cronycism, nepotism and inefficiency. Instead of making so much noise on subsidies, the government should instead make efforts to reduce corruption to a zero. If the government can control corruption and abuse effectively, I am more than sure that the RM56billion spent on subsidies can easily be recuperated.

In fact, I feel that the government will only waste all the so-call savings down the path of corruption and abuse, while the people have their lives made difficult by further beareaucracy just to save on fuel spending.

It is so typical of the Barisan Nasional government that whenever there is a problem with the country, it’s the people that has to pay for it. In the case of the oil subsidy, since it’s getting too expensive for the government to maintain, they will now transfer the cost to the people.

Bear in mind, that the phrase “expensive to the government” means “less money for cronies and “rent seekers” in UMNO. There’ll be less money for th 4th floor boys and the family of Pak Lah to squander, there’ll be less money for expensive but useless projects to make BArisan Nasional cronies rich, there’ll be no more money for useless and wasteful joint venture projects like the one recently exposed by MB of Selangor and many, many more examples.

Barisan Nasional, being corrupted as they are, will not want this to happen and as usual the cost will be transferred to the people. Their way of life must never be compromised.

Also, why complaint about subsidy now? When the price of oil was low, there was no subsidy. And the price of oil will decrease sometime in the future, as supply adjusts itself to the demand. Then, when the price of oil decrease, the amount we have paid now will be recuperated even more.

DAtuk Shahrir proposal is a disaster waiting to happened. It will only introduce further unnecessary and ineffective. If he is worried about foreign cars filling their tanks in our gasoline stations, then we should just charge these foreign cars different prices. After all, what’s so difficult about identifying foreign cars. Their number plates are very much different than ours and their road tax is also different.

Why do we go to so much length for a problem that is so simple to overcome?
I am aware of the argument that subsidies are a waste of resources. My belief is that these arguments are made by economists bent on making the rich more rich. How can subsidies be considered as a waste when they make the lives of the people better, they help to improve the quality of life, they put money into the pockets of ordinary people? Please tell me how is this a waste? Isn’t the role of a government to make the lives of it’s subject better?

While it is true that the world’s oil prices is rising due to ever increasing international demands, Malaysia should realize that we are a oil net-exporter country. Malaysia should be shielded by the increase in oil prices. I never did understand why the rising oil prices would be a big problem to us Malaysians.

Even if our oil price is cheaper then our neighbors (except Brunei), it seems that we are more expensive in other departments automobile wise. For instance, automobiles are much cheaper in Indonesia then Malaysia. For example, a Toyota Avanza in Indonesia is at least RM20k cheaper than ours. A Honda City, is at least RM10-15k cheaper than in Malaysia.

As for Singapore, they have the best public transportation system in South East Asia. They, therefore, do not need to subsidize their petroleum for their citizens.

Remember, our public transport system is still atrocious and unreliable. People have to drive just to go to the nearest LRT station. When, the right approach would be to have LRT station at every housing areas. So, how can the people travel with a clear mind when the BArisan Nasional government have no regards to the problem of the people.

Until we have a public transport system comparable to Singapore, I say the subsidy will have to stay.

Lastly, this is nothing more than an attempt by Barisan Nasional to further protect their hegemony and economic monopoly via their corrupt and decadent practices. Since the government is facing a shortage of cash, therefore the people will have to subsidize Barisan Nasional network of corruptors.
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  1. The argurements are true but example is 500 rinngit is distributed to all the poor every 6 months then removing fuel subsidies is nothing. Good transportation will come as pressure and market forces drive these needs. Petrol should be taxed like Singapore and priced at 5 ringgit a liter. Malaysia is going to become a net importer soon. UMNO must be defeated and the cronies crushed. The wealth of such cronies should be further distributed to the poor.

  2. it's nice to see all the bn bashing but the problem is that some of u are so comsumed with hatred for bn that they objected to any decision or policy by bn. subsidies for fuel is necessary for the poor but what we r doing now is subsiding the rich in their big expensive luxury cars and foriegners as well. so do u think thats a better cause than corruption as u claimed ???????

  3. please use brain while talking. where there is an increase in the petrol price very thing in the market which have any relation with the consumption of petrol will also increase. What makes u think that the money distribute to the poor will be useful?? when price increase, your purchasing power will decrease too. That small amount of money will be useless as the petrol price increase will trigger an inflation to the whole country

  4. Many oil producing countries have cheaper domestic oil price than Malaysia. Let's consider a farmer/palm oil estate cultivating vegetables/palm oil from earth. The prices of vegetables/palm oil increases 10 times, the cost of production will increase a bit (maybe due to staff cost or fertiliser cost) and this big LIE subsidy nonsense is continously being told continously to brain wash the public to believe it is alright to fleece the rakyat. Just look into the accounts of Petronas (not those listed ones but at ultimate holding level) and one ask if subsidy level is so high why is Petronas's profit is also at record high (more than RM100 bil a year).

  5. Yes, I for one also cannot understand why our country can be so adversely affected by global oil price increase when we are an oil producing country. Just wondering where Petronas fits in our oil price calculation formula.

  6. Petronas is just another UMNO cash cow. No one knows where they park the money & no one is able to access their audited accounts. By the way, the Petronas F1 sponsorship is another waste of good money. The F1 races are held in many countries where Petronas products are not sold.

  7. the main reason as to why the petrol subsidy should maintain is because of the chain effect of an increase.

    An increase of petrol price will cause transportation of materials to go up and even eating at a hawker centre is going to go up in price. In addition to the latest report on TNB to raise rates too... time to buy Tenaga shares

  8. an LRT station in each housing estate?

    To give you a sense of reality, there are nearly 1000 housing estates in the Klang Valley alone.

    1km of LRT costs approximately RM200 million.


  9. Thank you Abdul Rahman Abdul Talib, I learn from your post, a few good ones, especially you view of subsidy. Thanks.

    lihatlah wajah sebenar seorang reformis

  11. I don't understand the problem. The government is willing to give cash rebates of 625RM per car. This gives everyone the opportunity to buy 800L of petrol a year for the same price as before. With an average car you can go around 10,000km for the same price. If you need more than that (more than 30km per day) you pay extra which makes sense, as those who travel too much or have very unefficient cars, should feel the pinch more than those who reflect upon their trips and own fuel efficient cars. Going to work in the morning and coming back in the evening won't be much further than 30km for most people (for example living in Subang and going to KL for work). In general people don't go to work 7 days a week anyway, but much more likely are 5 or 6 days. There's food everywhere in Malaysia, also in a wide choice and usually in walking distance, so no need to take your car to go for breakfast, lunch, dinner and supper. Imiagine you find someone to share your car with (car pool) and go to work everyday. You save half of the money and can buy more petrol in case you really need it. The increase in petrol offers new chances as well: less jams - you will reach your destination faster and therefore your petrol consumption is lower. Next thing you can do is, get a smaller car. Small cars can save more than 50% of petrol compared to big ones.
    Most important thing: whenever you can use public transportation, do it. The demand will improve the system automatically thru money influx. It is cheaper than taking your car anyway and in case of the LRT often faster and very reliable.
    In case of subsidized petrol, also people without car and motorbike have to suffer, as the tax money that should be used to improve the country will flow directly into the petrol of those people who drive around a lot and waste an important natural ressource.

    Ken Tang

  12. Thanks for some quality points there. I am kind of new to online , so I printed this off to put in my file, any better way to go about keeping track of it then printing?

  13. My cousin recommended this blog and she was totally right keep up the fantastic work!

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  15. this post is very usefull thx!


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