My Little Thots on Petrol Subsidy Issue and Suggestions for Revamp.

Dear All,

How will real estate marketers who need to travel a lot be affected when the government revamps its approach on subsidised fuels (petrol, diesel and LPG for others) soon?

With the world's crude oil price crossing US$125 per barrel, the review is inevitable. It is only a matter of time that this will happen.

However, my view is there are a number of measures that the Government can take so that the poor will continue to be helped and at the same time the rich will not feel being discriminated.

This twin objective, I believe, can be achieved through the clever use/programming of the smart chips in Malaysians' MyCards as follows:

1. that subsidised petrol and diesel shall no longer be enjoyed by any foreigners - those without MyCards to slot into the pump's card-readers shall pay unsubsidised price for fuel - petrol, diesel or LPG;
2. that only MyCard holders - i.e. individual Malaysians (not firms) regardless of income levels - who own motorcycle(s) or vehicle(s) (motorised boat(s) included) shall enjoy subsidised fuels up to a certain litres a month: a) say, not more than 50 litres/mth for every owner of motorcycle(s), no matter how many you own; and, b) say, not more than 200 litres/mth for every owner of vehicle(s), no matter how many you own; beyond which unsubsidised prices for fuels shall apply and the limits are subject to reviews depending, among others, on the amount of Malaysian's net export in petroleum and the world's crude oil price;
3. that if you are a Malaysian owner of both motorcycles and vehicles, your entitlement to subsidised fuels per month shall be the same as that of a Malaysian car(s) owner i.e. at not more than 200 litres/mth;
4. that any unused entitlement or balance thereof for any month cannot be carried forward or accrued for subsequent months or use - they are 'burnt off' at the end of every month.
   

JPJ records can be used to programme the smart chips in MyCards for this purpose so that each time petrol, diesel or LPG are bought at fuel kiosks/stations, those who qualified for subsidised fuels can slot their MyCards into the card reader in addition to credit cards, bonus link or petronas mesra, etc.

Once your entitlement for subsidised fuels for the month is reached, you pay unsubsidised rate for the rest of the month until your new entitlement arrives in the ensuing month.

This approach ensures that the poor are helped and are minimally affected, if at all, and the rich who pay taxes at higher brackets are not being discriminated from equally enjoying the benefits of their country's natural resources.

Foreigners too should have no complaints because when we Malaysians go to their country, say, to study thereby enjoying some subsidised education, they too ensure that we pay for it through employment bonds; when Malaysians own properties there, Malaysians pay 10% more in Property Tax (PT) by way of PT surcharge, when Malaysians drive into their country, Malaysians have to pay a certain levy presumably for clogging up their roads, Malaysians never pay the same tax rates as the locals anywhere...

So, it is normal for Malaysia's subsidies whether for fuels, foods or any controlled items to be enjoyed by Malaysians only. Many countries have long ago observed and practised this principle. It's certainly time that Malaysia do the same.

What you think, folks?

Douglas.