The global crude oil price is now US$36 barrel. In contrast, the local pump price is still relatively high at RM1.80/litre – despite a fifth reduction in price on 15 December since a 41 per cent hike in June.
It’s obvious that the pump price is now higher than the real market price; in other words, the higher price is a form of consumer tax (as opposed to a subsidy previously). Now, it is the government’s prerogative if it wants to impose this kind of tax.
But what is it going to do with this surplus?
