Petrol Prices... Subsidies vs. Taxes

Headlines from Malaysia Today: "Malaysians are now paying petrol tax"

What does that mean? And why do I feel mad after reading the news piece?

For a long time, M'sians have been "enjoying" petrol subsidies from the government. Our beloved government tried to cushion the people's burden by ensuring the pump prices are stable. However, after the March '08 general elections, the world crude oil prices shot up and our head honchos got a little nervous.

Since then, a RM 0.30 subsidy has been allocated to show our gomen's "concern" to the burdens of the people.

Did it cushion our countries inflation? NO

Any price increases? YES (however, the PM covered himself by saying the public would not be "too badly affected by price increases")

The guys on top were in hot soup, and had to think of something to do regarding oil prices. Today, our much respected PM said "the Government had kept its promise to reduce petrol prices." Thank their lucky stars that the world oil prices dropped. Referring to the high prices of goods, the wise man blame-shifted "The Government had kept its promise but traders are not doing their part," he said.

Today, world crude oil is priced around RM 55 and our dear minister says that "Even if prices return to RM1.92, we will still have a bit of surplus."

SO WHY ARE PETROL PRICES STILL AT RM2.00???!!! The lame excuse is that it will be returned to the government effectively as a form of tax. From Subsidies to Tax. Now M'sians are being TAXED FOR PETROL!!! Can you see why I'm MAD?!

To refresh our ever forgetful human brains:
- June 5th 2008, when the petrol prices were raised by 78 cents, our eloquent PM said "Our effort is certainly not an attempt to be popular but we try our best to help the people. We cannot satisfy everyone," - I guess they've changed their minds from helping to taxing.

- "Oil firms to stop offering petrol as contest prize" as it was a controlled item and subsidised by taxpayers’ money. - Shahrir Samad, September 9, 2008. So now, since we are taxed for petrol, is it OK to offer petrol as contest prize???

- Remember the RM 625 rebate? "Pos Malaysia getting RM30m in commission" - I guess we know who's the happy camper here. Btw, some people say that Khairy and the 4th floor boys has a hand here.

Graph taken from MalaysiaKini website. Please subscribe to their news portal!