Fuel Subsidy

Our beloved minister reported that there will be 2 price structure for petrol from May 1st 2010. The little revelation that he provided was that the subsidy will be based upon the engine capacity of the vehicle. Such smart and shallow decision. Here's the news stub at The Star.

For Malaysians, the price of petrol will also be based on engine capacity, which means that not all would be entitled to subsidised fuel, he added.

“Not all Malaysians will get the fuel subsidy, which should by right be given to those earning less,” he said.

Ismail said those eligible for the fuel subsidy would be able to buy fuel based on the current prices while those who are not eligible for it, will have to pay the market price.

“For RON95 petrol, the Goverment’s subsidy is 30sen per litre now. The current price of RON95 petrol is RM1.80 compared to the actual price, which is RM2.10.

“So, Malaysians who are not eligible for the subsidy and also non-citizens will have to pay RM2.10 or more,” he added.