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Consider petrol subsidy for retirees and those 60+
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The government has proposed a cut-off point on subsidies for petrol sale nationwide next year based on an individual’s monthly salary/income, of which this (reduction on subsidies) is to be worked out into three categories like those earning up to RM5,000 monthly will get to buy petrol with a subsidy, those earning between RM5,000 to RM10,000 will still get a reduced subsidy, and the next group with earnings of RM10,000 and above will have to pay the full market price.

This does not augur well as it is rather an unfair scale because when put to use it will divide the people into different classes - the rich and the poor. We are 1Malaysia and so we all stand to share the petrol subsidies on an equal basis and, certainly not based on our remunerations or income. The question is we are citizens and Malaysians unless there are different categories amongst us?

Please take note that it is the wrong time for the government to think of reducing the petrol subsidies when the price of world crude oil had plunged (plummeted) to US$81.01 for a barrel on Oct 24, 2014, and the price for the next one year is forecast at US$93 per barrel. This is because there is an oversupply situation for crude oil and also because of the current weakening world economy.

By the way, if I am not mistaken in 2012-2013 when crude oil prices went up, the government was reported in the papers as saying that they have to pay more to buy crude oil to process into RON95. Of course, they ‘forgot’ (without acknowledging the fact) that they were then making huge profits from selling the nation’s finer grade crudes at much higher prices.

The public had no option then but to accept the price hike on RON95.

Now that the price for crudes had ‘crashed’ down below US$110 -US$120 a barrel, the government should in fact taken the necessary steps/actions to reduce the price of RON95 to less than RM2.10 a litre, instead hiking the price by 20 sen a litre.

The government also did not say anything about how much petrol subsidy is given to those aged 60 and above, such as retirees, pensioners and those who do not own the car they drive because the cars were bought by their children mostly living abroad.

There is another case when cars are taken out on hire by tourists and locals because they need to refill the tank full on returning the cars to the company/hirer.

There you go. There are more such cases to deliberate on before removing the subsidies by stages. And, surely there is a lot more work to be done prior to its implementation so that all loopholes are plugged to avoid pilferage and ‘siphoning’ the petrol for resale.

These will surely take a lot of paperwork and time to get the right things done.


LAU BING is a community activist and writer in Subang Jaya.

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