January 10, 2010

Realism at the pump

Yes I don't have a car but still this is one good article to share. Do continue to read, its a good English anyway.

If, come May 1, Malaysia becomes the only country in the world to charge two base rates for petrol at the pump, vive la difference. This move, telegraphed two months ago in the 2010 Budget, is among measures to cut RM2 billion of the government's subsidy bill. With Malaysian taxpayers' money funding subsidies to the tune of RM8, 000 per capita on petrol, at the top of an eye-widening list of other things, including cooking oil, sugar, flour, power, diesel and gas, it was always obvious that the first place to trim these overheads should be where they were benefiting non-citizens (There, that's totally 100% right!).

Trimming the RM720 million sugar subsidy by letting price of sugar rise by 20 sen per kilo met with only muted protest, thanks to the now universal acceptance of the health benefits to be gained from reducing sugar intake (Notice the more often Reduce-Sugar-Intake commercials on TV lately?). Not so for petrol though. Measures to stop subsidized petrol flowing out to Thailand and Singapore in the fuel tanks of foreign vehicles have been tried before, none of them to any lasting effect. Ensuring Singaporean vehicles' tanks were only a third full on their return to the island republic was unworkably tedious. Limiting the permissible volume of petrol purchases in areas within 50km of international borders was immediately circumvented by vehicles soaking up their 20-litre allotments at several petrol stations in turn.

At last, technology has caught up to the task (You have to admit, kudos to those hard-working Electronic Engineer!). From May 1, it will all come down to the chip in a MyKad. With it, a citizen may purchase RON95 at RM1.80 a litre; without it, the price will be the full RM2.10 (Thank you very much and enjoy your stay). Which, to be honest, probably won't make much difference to the volume of fuel sucked up by foreign-registered vehicles, as it would still be cheaper here than in their home territories - but at least it won't mean Malaysians footing the bills for their savings.

Here and there, we heard of people complaining about something or the other. That means problem. I quote from somewhere I read before, "Every problem has one common solution. It is patience."
And it's so true, don't you think?

I'm sure this new decade will bring more enlightening events for us to witness and to take lessons from.

[source : NST, Jan 9, 2010]

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