With the price of crude oil rising above 100 dollars a barrel, it’s inevitable that our petrol price is going up pretty soon.
Malaysia is not facing bankruptcy danger even if we keep the price level… what Deputy Prime Minister Najib Abdul Razak claimed prior to the New Year Day was obviously to demean the opposition parties instead of solid economic facts. Najib said that the opposition’s promises to reduce oil prices if it were to form a government will only bankrupt the country, because it’s not possible…
It doesn’t take a genius to realise that the government controlled Petronas would be making extra money following the rising oil price as well… the government is probably not losing too much with the subsidies compared to a few years ago (if there is any loses at all).
Khairy Jamaluddin was right though when he said on Umno’s General Assembly in Nov 2007 that the petrol subsidy could be better spent on other developments. My point of view is still the same… that it would be a wise move to cut the petrol subsidy ONLY IF the money are spent at the right place (education, health care etc.) and not going to dubious projects like Angkasawan or buying a new submarine… or perhaps the worst – to waste and corruption.
Considering that Malaysia won’t be having much petroleum resources left (probably finished in a decade or two without new findings)… our government need to be proactive in finding new energy resources (bio-diesel, solar power etc.) and reducing petroleum consumption. We need a better public transport system to start with; it’s a pain to travel in Malaysia without a car.
At the meantime, we the common citizens just have to be prepared for the next price hike.