Petrol 40.6% higher

It had to come sooner or later. The government just announced a 78 sen per litre or 40.6% increase in the price of petrol (or gas as the Americans called it). I have said earlier that we cannot go on living on subsidized fuel. People became complacent and start taking things for granted. Even those who in actual fact cannot afford to own cars are buying cars just because petrol cost is low. And people who can afford it, waste petrol just because it is "cheap".

Why should we subsidize these extravagant spending? To make it worse, we are also subsidizing citizens of neigbouring countries and also fuel smugglers. I read a few initial responses from the so-called public and all are criticizing the government's actions. Come on folks, there are many things that I'm not happy with the government but lets be realistic in this matter. At RM2.70 per litre we are still getting fuel at below their actual prices.

Now, Anwar Ibrahim and his friends are going to say that we should not be paying high fuel prices because we are a net exporter of petroleum. The high world oil prices should enable us to increase our subsidy further, they would say. After all, we are getting more money for our oil. That is why their election manifesto promises a reduction in fuel prices. Of course, we can afford to do this at this point in time. But we will be a net importer of oil in a few years time. So, is reducing the fuel prices now the most responsible thing to do for the long term benefits of the country? Or is it just for political convenience? Won't keeping the fuel prices low, encourage our people to be wasteful and discourage new research on alternative fuel sources?

Why don't we be prudent? After all, at RM2.70 there is still a need for subsidy. Let everybody feel the pinch. Hopefully, the people will now take another view of how they consume fuel.

Now, lets get to the more important issues which I feel the government should address. How to help the people who will be most affected by the increase in fuel prices such as public transport operators and the lower income rakyats. How about the government's efforts in providing viable and reliable public transport systems? How about alternative fuel sources?

Of course, another important issue is how are the profits earned by Petronas earned from the ridiculously high world oil prices going to be used for the benefits of the country? This must be thought of on a long term basis because we are going to run out of oil in no time. Lets lay the groundwork for a long term solution using the profits from Petronas instead of just giving a simple subsidy to keep the pump prices at unrealistically low levels just for political expediency.

Lets hope our politicians (both those currently in power and those in waiting) do the honorable and responsible thing. Oh.. what am I saying? Asking politicians to be honorable and responsible? I must be out of my mind :-)