Economic Crisis: Oil price raise again

Abdullah government will raise the fuel price according to international market and announce a new fuel subsidy which will take effective on 5th June 2008.

All the while, Malaysian having the petrol subsidy from goverment which currently RM1:90 per litre. "From August onwards, the feul price will be raise up and the provision that subsidies should still be enjoyed by Malaysians not ont he basis of use but on the basis on need." Suggested by Finance minister.

However, the suggestion still haven't finalise yet because it is quite difficult to define a fair and perfect schema for subsidy. Some rumor of the subsidy is based on the income, higer income group will entitle less subsidy whereas lower income groups will entitle more subsidy.

Some rumor on car basis. Big car for less subsidy, small car for more subsidy. From the above two suggestion, we can know that this could be bring benefits to lower-income group. Many judgement spreading here and there.

According to feul price raising plan, one of the main purpose is to ban the genius visitors or tourists are filling up at local stations and then turn back. They ban on the sale of fuel to foreign-registered cars in the northern border towns as you know recently most of the country have been affected by the oil and gas price raise issue.

Anyway, as a Malaysian we hope that the new implementation will bring benefits to both way either government or public.

As a the finalise result, Adullah anounced the new feul scheme just now (4th June 2008). Adullah anounced the petrol price hike up to 40% from RM1.92 to RM2.70. Those car with capacity less than 2000cc will have cash rebate RM625 per year, this is effective from July.

See how do Malaysia driver's reaction on petrol price hike