Oil price hike protest in Ipoh (Source: Unknown; forwarded via email)
So Petronas and the Malaysian government says subsidies distort the market. Of course, the withdrawal of subsidies will encourage conservation of a scarce resource – which is a good thing. It might even reduce pollution and congestion. Roads were noticeablly less congested in parts of Penang and KL today. Traffic on the Penang Bridge heading to the island at 5.20pm – peak time – was smooth; the usual bottleneck after the toll plazas, as the mutiple lanes narrow down to two lanes, was gone.
But has the government given much thought to the impact of the removal of oil subsidies on the poor – and even large segments of the middle-class, who are rapidly moving down to the ranks of the poor in terms of real purchasing power?
One key question has not been answered: why a sudden complete removal and not a gradual phasing out? Come on, tell us how much profit Petronas made for the year ended 31 March 2008. The figures should be available by now, even if the annual report isn’t ready.
