This malaysiakini article Gov't should profit from low fuel prices, says Shahrir shows how the government is struggling to come to terms with declining oil prices.
I am sure most Malaysians understand that there are many processes involved in converting a barrel of crude oil into the different grades of fuel and by-products.
But once the basic material cost drops it is expected that the final products costs should all drop if all the middle-men operate on a fixed margin that is not based on percentage cost.
We also know that the government imposes taxes on oil products like fuel and we can understand that the government needs to raise funds for its operating and development budgets.
The cost of government in Malaysia has become too large and shows no sign of reduction; especially with the ever-increasing manpower numbers.
I suggest that fuel prices should be reduced to about RM1.80 and the Minister should create a special fund for the "excess fuel profit" to improve public transport in the major cities.
But have a good debate in Parliament where the pricing mechanism is disclosed; how the government budget has been adversely reduced and how much "extra taxes" are being paid by motorists now.
WARNING. I believe there are 2 major issues that the government must properly tackle if it is not to lose the next GE. These are the ISA and accounting for the fuel taxes.
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Lately, Sharir has been talking about "floor price" for petrol. This is absurd. Truly pirate mentality.
As Consumer Affairs Minister he is suppose to protect the people and not the traders. Just because most of the petrol kiosk owners are UMNO members, he is volleying for "floor price".
When the price was increased, the traders didn't make any protest but why now? They are in business and should be able to accept RISK. I say no to FLOOR PRICE. Malaysian shouldn't be dumb enough.
What the government is doing now is robbing the rakyat. The petrol price hike several months ago, already spiked high other essential goods price and they are yet to come down. As of now, only petrol price is declining but not the other goods or services.
No to FLOOR PRICE for petrol. Crude oil per barrel closed below US50. But Malaysian are paying more than market price and there is no subsidy too. SHARIR is TALKING COCK!
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