Malaysia may cut petrol subsidies ; New octane 95 fuel

[Cheekg98]

Malaysia may cut petrol subsidies

 

Posted: 06 April 2008 2255 hrs

Photos 1 of 1

A driver fills up his car with petrol at a petrol station in Kuala Lumpur, Malaysia (file pic).

 

KUALA LUMPUR : With oil prices near record highs, Malaysia could cut subsidies for higher grades of petrol in order to keep prices down for middle income groups and the poor, reports said on Sunday.

 

The government expects to spend 35 billion ringgit (10.7 billion dollars) on fuel subsidies this year if oil stays around 100 dollars per barrel, and has already indicated there would be some cuts ahead.

 

Consumer Affairs Minister Shahrir Samad was quoted saying the bulk of the subsidies would go for a new octane 95 fuel for use in most vehicles, while a higher octane petrol for luxury cars and SUVs would get less state support.

 

According to the New Straits Times, Shahrir said the government would save costs by mainly subsidising only one type of fuel. It currently subsidises two types, octane 92 and octane 97.

 

"The goal is to have subsidies targeted and more focused at those who need it, such as the lower and middle-income group, and giving a choice to the rich on what petrol they want to fill in their tanks," he said.

 

"The system is a shift in how we price petrol, but it is necessary if we are to lessen the burden on the lower and middle-income groups," the paper quoted him as saying.

 

Malaysia imposed its highest-ever fuel price rises in February 2006, citing the spiralling cost of crude oil. The move was condemned by political and civil groups, arguing it was unnecessary as the country is a net exporter of oil.

 

The central bank recently said that rising prices of fuel, commodities and food will see headline inflation for the year rise to 2.5-3 percent from 2.0 percent in 2007. - AFP/de

[Boyboy]

currently, their RON 97 is 1.92, and their RON92 is 1.88

 

who will pump 92?

 

i think this is the way to go. subsidise the lower octane more, higher octane no need so much subsidy

[Gary84]

haha ya man i agree with u...Looking at the rate, ron95 $1.90? lolx

[Calvin1]

car can move can liao.. thats what the malaysia gov think.

[Sony]

how true and when?

 

talk only

[Creatorhk]

car can move can liao.. thats what the malaysia gov think.

Petrol is petrol, they learn fast.

Edited April 6, 2008 by Creatorhk

[Nutty]

Will this move cut down the jam at the checkpoint?

[Boyboy]

nope..

 

pple who are not going in for the petrol, won't be bothered by a few sen increase (how much can they up the price? 20c?)

 

pple who go in for the petrol might not like it, but no matter how much they raise, unlikely to compare with our astronomical gas prices

[Rickster]

SG should learn from them

[Rickster]

Ya, even if its another increase of 20sen, the overall petrol price is still about half of what we are paying here

[Friendstar]

car can move can liao.. thats what the malaysia gov think.

 

tats wat i tink also leh

 

i dont mind lower grade octane

Edited April 7, 2008 by Friendstar

[Friendstar]

anyone got problem with the 3/4 tank rule to malaysia?

[Unltd]

I think its a good move if they cut the subsidy on higher octane petrol and increase subsidy on lower octane.... However, will they just talk the talk?!

[Beehive3783]

At the very least, they bother to have fuel subsidies. How about Sillypore? No subsidies, and prices keep rising. Rubbish.

[Shull]

fyi, alot of countries also don't have subsidies for theor petrol..

but the competition is keen ..therefore, prices can vary from 1 station to another..

 

unlike us, all the cartels operate as 1 entity..1 go up, the others follow suit..

[Boyboy]

SG should learn from them

 

what do u mean by tt?

 

FYI, in SG, RON98 is taxed more than 95 and 92. reason being that 98 is premium product. 95 and 92 are bread n butter petrol

[Rickster]

Is that so? Learnt something new today.

 

U see...the MY garment is talking about subsidy...and our garment is toking about taxing. Thats the main difference here.

[Boyboy]

ok i get what u mean