Okay, you tell me what the local petrol price should be now, bearing in mind that they have removed subsidies completely now.
Of course, we also need to factor in the need to conserve scarce fossil fuels.
I think RM1.80 without any subsidy would be a more acceptable price now, taking into account the need to bring down food prices and stimulate the local economy while trying to encourage fossil fuel oil conservation and prevent wastage at the same time.
Thanks to Ong Eu Soon for compiling this chart:
|Petrol price||Global crude|
But then they have gone and based the country’s national budget on a much higher oil price, with a higher budget deficit projected! They really have to come up with a new budget now.
Says blog reader tan, tanjong bunga:
The recent budget is out-of-sync with the current oil price of US$55-56 per barrel.
If the govt does not review its budget based on current situations, we can expect the govt to maintain the price of petrol at RM1.92 to RM2. The extra RM billions obtained from no subsidy plus sales profit from petrol would offset to a certain extent the shortfall from its projected revenue from the oil industry. In doing so, the govt is actually imposing an oil tax on the consumers! This is in effect adding insult to injury of no 30 cents subsidy!