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Wednesday, April 9, 2008

Fuel subsidies

This is a neverending topic of discussion.

Recently the government announced that they are considering scrapping RON 92 and RON 97 and to introduce RON 95 and RON 99. RON by the way means Research Octane Number. The higher the octane number, the better the fuel...supposedly. The reasoning is to introduce a higher subsidy for RON 95 for the low and medium class income and a lower subsidy for RON 99, meant for the Benz and Beemers.

But come on. What stops people from using RON 95 instead of RON 99? Nothing. What stops them from mixing the two types of fuel? Nothing (You can safely do this, coz only the octane numbers differ).

They have to find a better way to subsidize fuel...or don't subsidize at all. We all love the fact that our fuel prices are on the lower side, but we all have to be more realistic here. It is true that governments are supposed to help their countries, but we have to see a more holistic global picture on this energy issue.

People all around the world are seriously considering renewable energy to prepare for any future energy crisis. But we are still bickering about the prices. Our government needs to move faster in adopting RE in Malaysia. Private companies and GLCs can't move quickly in this field if there is no directive from the government. Why? Because bottom line is economics and the economics of RE don't work without government policies and subsidies. Look at countries like Germany and Spain...they aren't environmentalists for going into RE, they are going into it because they are making money from it!

Reflecting on the previous elections, I think not even one person took the environment to be on the agenda. In some countries, that becomes a deciding factor on whether they get elected or not. Malaysians need to move forward. We can't just keep on thinking about the short term and we definitely need to think more globally.


2 comments:

Hasbullah Pit said...

Politik belum matang lagi...

Anonymous said...

it's just the management's agenda, everywhere...