2 Tier Fuel Pricing System: Please Don’t Fuel Stupidity

stupid

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Just assuming that this is what was truly said, it just reaffirms the notion that stupid statements can also comes from anyone including the oppositions.

From theStar:-

JOHOR BARU: A two-tier fuel pricing system for foreign registered vehicles will adversely affect the economy of the city.

Johor DAP chairman Dr Boo Cheng Hau said such a move would inconvenience both foreigners and local businesses dependent on the Singaporean clientele.

Johor DAP vice-chairman Norman Fernandez urged the Government to weigh the cost of restricting Singaporeans to unsubsidized petrol against the economic losses suffered by traders.

Meanwhile, Senai assemblyman Ong Kow Meng said that a two-tier pricing system would breach international free trade agreements.

“We will also be the laughing stock internationally if we implement the two-tier pricing system,” he said, adding that Petronas should instead pay for the subsidized fuel.

Stupid Statements?

What the DAP politicians is trying to say here?

Continue to give subsidized fuel to foreigners, at the expense of Malaysians’ public fund? Whilst a complete ban of fuel to foreigners will be of inconvenience and should be restudied but if it means having 2 tier pricing system where subsidized fuel is for Malaysians and unsubsidized fuel is for foreigners, then it is workable.

Two tier pricing system is the right way to go to stop the indirect leakages of Malaysian’s public funds to foreigners.

Foreigners should be allowed to unsubsidized fuel but a strict enforcement must be made to ensure that subsidized fuel is off-bound to foreigners. Where is the breach of international free trade agreements if foreigners are allowed to obtain fuel from Malaysia but at actual market rate?

Allowing foreigners to enjoy subsidized fuel is not only deemed unfair to Malaysians but should also be taken as high treason (why? it is almost like giving away free taxpayers money to foreigners). Doesn’t this sounds very stupid?

Two tier pricing system will not cause us to be laughing stock as it protects the rights of the citizens but stupid statements by “publicity desperate” politicians will.

Why now?

In Malaysiakini, it was reported that RM1.2 billion was spent subsidising fuel sales at petrol stations located near the borders of Thailand and Singapore and 80% of the fuel was sold to foreign-owned vehicles. So, the ban will allow a saving up to RM1.0 billion.

RM1.0 billion is a lot of money and that is what the foreigners took from Malaysians in day broad light. Just imagine how much was subsidised for last 10 years? Why the Government didn’t implemented the 2 tier pricing system long time ago?

We could have saved billions of ringgit in subsidy and perhaps re-route the amount to national development.

Alternative enforcements

Nothing has been said by the Government on the measures taken to reduce the rampant smuggling of the subsidised fuel from this country. Ban of fuel along the border will only increase smuggling activities and while the enforcement agencies will be on the lookout for these smugglers, what the Government have done to tighten the screw on the smugglers?

Has the punishment for smuggling been increased? Has the enforcement been beefed up to curtail the rampant smuggling? If we are subsidising RM1.0 billion at the petrol stations near the borders, then definitely we are “subsidising” even more to the smugglers.

The bigger picture

The international fuel price is only going to go up and Malaysians must be prepared to fork out more for fuel. With Malaysia going to be a net fuel importer soon, forget about cheap fuel in Malaysia – even with high subsidy & tight enforcement.

The question that remains is what the government have done to ensure that continuity of national development and welfare of the people in light of the high fuel price – alternative source of fuel (what happened to the bio fuel hype?), reduction of shortages, improvement of public transport, re-rationalisation of the roads & highways, fuel saving vehicles and more.

Of course, there is always the option of “change of lifestyle” – not the type that the Government often asks us to do but don’t do the same themselves. I am talking about changing the way we drive and getting that fuel to last longer.

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2 Comments

  • We need a well articulated energy and car ownership policy and have to design a public transport system that is efficient and effective. Piecemeal and knee-jerk responses are wasteful. Perhaps, we should work with our ASEAN neighbours like Thailand and Singapore to ensure that we can eliminate petrol price disparities that are glaring so that we do not have cross border purchases of oil.

  • Din – Hopefully the Government changes their lifestyle too

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