`


THERE IS NO GOD EXCEPT ALLAH
read:
MALAYSIA Tanah Tumpah Darahku

LOVE MALAYSIA!!!


 


Saturday, November 22, 2014

Benefits for the people CUT, wastage in the govt IGNORED: Will Najib let car prices follow market prices too?

Benefits for the people CUT, wastage in the govt IGNORED: Will Najib let car prices follow market prices too?
‘Benefits for rakyat are cut, but wastage in public services are ignored.’
CiViC: I have a feeling half the people reading this news report don't even realise what it means.
Technically by removing subsidy, fuel prices float with global prices. That was done for RON97 some time back, but we never saw it "floating". Instead, it was directly dictated by the ruling government.
Now that even RON95 and diesel is going this route, it basically means nothing if it's the same as what happened with RON97.
And what can we do if prices after that still don’t go up/down with global prices? Yes, you are right, nothing.
Lee Poh Quan: Now that the fuel subsidy is gone, can we expect our car prices to follow market prices as well? There is no longer any basis to impose heavy taxes on cars with fuel subsidy removal.
Dalvik: Thanks. This is the best we can get from Najibnomics. Benefits for the rakyat are cut with more taxes applied, but wastage in public services are ignored, year in year out.
Even if the global oil price maintains the same next month, it simply means RON95 will get double hike in just two months.
I am all for subsidies cut for the long-term economy benefits - but the prerequisite is the government must be transparent in their spending, accountability must be seen for the repeated wastage revealed by the Auditor-General's Report (yearly). After all, government is just the elected representative of the rakyat to manage this country's asset.
What good governance is the government showing if they are asking the rakyat to change their lifestyle to brave the hardship, while showing little sign of taking punishment for their own wrongdoings? Stop punishing the rakyat for your inability to balance the books.
The Analyser: Excellent decision. Prompted no doubt by Joko Widodo’s (Jokowi) move in Indonesia and to counter PKR vice-president Rafizi Ramli's threats.
I wonder though if BN really knows what it's doing. This move smells like a unilateral, rash, impulsive move made in isolation from the rest of BN's complete lack of an economic policy.
Supercession: Is this a sign that Umno has almost bankrupted the country and is desperate for more money?
Anak, Bangsa, Malaysia: If the world fuel price goes up then our petrol price should come down, too. This is because Malaysia is an oil-producing country and we become richer each time the world oil price goes up.
Pputeh: Now what is going to happen to all the money saved from these subsidies? Into whose pocket is it going?
Indeed, when oil prices go up in the world market, pump prices will go up, too. The government of an oil-producing nation will make more and what’s going to happen to all these profits made then?
Rakyat Malaysia 289b: Sugar price had dropped from US$36 in 2011 to US$16 now. Why does the sugar price remain the same?
Anonymous_1413635814: The government should up the price of RON97, RON95 and diesel to make say 10 percent to cover for the many years of subsidy. Otherwise how do we balance things out? Instead it is seeking to be popular by quickly slashing the RON97 price.
Believe me, whatever the subsidy as a consumer, I won't say thank you. In fact, I think the government is stupid burning our money away through petrol/diesel subsidy. If you want to drive a car, be man enough to pay for your own petrol.
Caripasal: Our petrol and diesel is definitely more expensive than the international price, albeit of lower quality. It is determined by the float system which is not transparent and manipulated. It is ironic that the government needs to profit from selling petrol despite being an oil rich country.
There is no improvement in living standard from neither the crude oil money nor the billions of ringgit saved by the subsidy cuts. Inflation is expected to soar after the implementation of the Goods and Services Tax (GST) next April.
Of course, the government will publish a fake record-low inflation rate again despite a record-high goods price. Crude price is expected to crash next week after Opec production is cut, and the falling crude price will severely impact the government’s finances.
Lee Hup: Caripasal, are you sure our prices are expensive? I think you better do your homework. By comparison, the price of petrol in Malaysia is the second lowest among the seven neighbouring countries in Southeast Asia.
Spinnot: What rubbish are some of you talking? The opposition blames the government for reducing the subsidy on RON95 and diesel, they did not ask for the subsidy to be scrapped.
The opposition never mentioned RON97 in the past because it was perceived as petrol only used by the "rich".
FellowMalaysian: The managed float system is just a gimmick to deceive the people into paying more for petrol to account for the falling ringgit. This is pushing the burden of the government's failure to halt the ringgit depreciation and disburse its consequences to the rakyat.
The value of the ringgit should not be taken into consideration when petrol dealers' prices are determined as our country is a net exporter of petroleum. Figure it out and just follow the market prices.
Fair Play: The powers-that-be really have no choice. The declining oil price would place a severe strain on Budget 2015 that was prepared at US$105 a barrel. The budget deficit would widen and the global rating agencies would have a field day.
Elimination of petrol subsidy is perhaps the only option available at the moment to counter the declining oil price. Another possible weapon might be GST on petrol.
Next year will a tough year because of the strengthening of the US dollar which could cause imported inflation and reduced revenue from commodity exports. An article in the Wall Street Journal had already mentioned this.
Hard times are ahead for the ordinary rakyat, what with a potential hike in electricity and others that the rakyat might not be aware of.
Wira: What if the oil price goes above US$100 per barrel next year? Is the government going to let the float continue?
What if it's US$130 per barrel? Will RON95 be sold at RM3.70 per liter? Good luck BN, good luck Malaysia. -M'kini

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.