Petrol prices should be increased

One of the election campaign promises made by the Opposition Front is to reduce the price of petrol the minute it forms the next government and this is getting the rakyat excited. PKR's de facto leader is going round the country telling everybody that care to listen that in his 8 years as Finance Minister, the pump prices of petrol was kept at RM1.10 and now Pak Lah has almost doubled it.

To me, all these are a lot of bull. The only reason why petrol prices during Anwar's time remained at RM1.10 was because the world's crude oil prices remained at "manageable" levels for the government to continue subsidizing it. Not because of Anwar's brilliance at financial management. I think he should stop taking us for fools. He may end up sounding like the same people we are trying to avoid.

If the world's oil price is now at USD95.00 per barrel why should Malaysians pay prices like when it was at USD50.00 per barrel? Who use petrol? Everybody. Everyday folk trying to earn a living, transport operators moving goods, services and people, the rich showing off their gas guzzlers, fresh graduates who just started work but already bought cars when they actually cannot afford them, the lower income wage earners who had to have their own transport because the public transport system is unreliable and many more.

Why not conduct a proper study and determine who needs to be helped and how?. Price subsidy is just one way. It may be the easiest way just because we happen to be a producer of oil, but it may not be the best way. Why not look at conservation, alternative fuels such as NGV which we have in abundance etc?. When we adopt the easiest solution we do not encourage research in other areas. When people are forced into accepting the high petrol prices they will be encouraged to look into other economical alternatives.

Granted, we need to support the logistics and public transport companies with their fuel bills, failing which all costs of goods and services will be increased which affect the masses. But price subsidy is not the only solution. Lets encourage them to convert to NGV by giving tax breaks for them to convert and also incentives for companies to set up NGV stations. Petronas should also set up NGV depot and terminals.

Just look at the fishing industry. The government provides the fishermen with subsidized diesel thinking that they can keep the prices of fish at reasonable levels. What actually happened? The fishermen found out that they can make more money selling the subsidized diesel to industries rather than toil in the sun to go fishing. So, we ended up paying for the subsidy but without the fish making the cost of fish go higher. To solve this, a new department is formed to check on the fishermen to ensure that they do not sell the subsidized fuel. Increased bureaucracy, increased chance of corruption, increased costs.

Let the cost of petrol increase. People will then be more prudent in their usage of petrol because they will feel the pinch. If we continue to provide a "false" pricing level, they will continue to take things for granted and waste this valuable resource. Use the money saved and also some of the profits earned by Petronas to reduce other cost of living expenses such as education and medical care. Encourage conservation and use of alternative fuels.

I know my suggestion will be too much to ask from politicians at this time but lets see if there is somebody brave (or stupid enough) to say the right thing. I was just thinking my uncle who rides his bicycle everyday in my kampong should not be asked to subsidize the cost of petrol used by an Umno leader who uses a Daimler or Porsche which he bought using money from selling shares which he got through the Bumiputra quota. Well, my uncle may not be paying anything in taxes because he is not earning much to be taxed but the savings in fuel subsidy could be used to improve the medical facilities which he makes use often. Maybe now, the Health Ministry can employ more doctors to operate the overly expensive equipment which are only used once a month when the specialists who knows how to use them comes to the district hospital. Oh, now I'm touching on another subject...