Fuel hikes - it appears only the economists are happy.
The topic du jour must be the shocking 30 sen petrol price hike that was announced on Tuesday and as expected most industry groups are up in arms over this sudden increase.
- The Manufacturing Sector is worried that this would lead to higher transportation charges and employees demanding for higher mileage claims.
- The Selangor Freight Forwaders & Logistics Association worries that conventional lorry transport companies and warehouse operators will be the hardest hit.
- AirAsia has upped its fuel surcharge by 50% for its West Malaysia routes.
- Malaysian Taxi, Limousine and Hired Cars Association has complained that the recent taxi fare hike is now of no use as any gain has been wiped out by the price increase.
- The Malaysian Retail Association has revised its growth projection for its industry downwards from 8% to 6%.
- The Pan Malaysia Bus Operators' Association said more bus operators will go bust or reduce their routes unless the Government implements the diesel fleet card subsidy system soon.
- The MTUC says that the price increase of 18.5% far outstrips the average worker’s pay increase of no more than 5%.
- The Malaysian Muslim Restaurant Owners Association says the fuel price increase could lead restaurants to the “breaking point”.
- Hawkers are beginning to increase prices of their food because of the higher LPG prices.
In spite of all this, the
Business Times quotes a couple of economists to put a positive spin on things:“The fact that the Government is actually subsidising (petrol and diesel) less is positive,” said Joseph Tan, Standard Chartered Bank’s global research economist. “We want to see as free a market as possible, with minimum distortions,” he told Business Times.
And CIMB Securities chief economist Lee Heng Guie:
“The subsidy cut will enable the Malaysian economy to thrive in a more competitive environment as we don’t really know our competitiveness now.”
Bottom line: What is the government going to do with the RM4.4billion savings from fuel subsidies? While we wait with bated breath for details of the 9th Malaysia Plan, I’m already making plans to sell my 2-litre car.
Technorati tags: malaysia, fuel prices, petrol
posted by hew @ 11:59 am
2 Comments:
the last time i checked, hybrid cars (using both petrol and electric) are not sold in Malaysia. i'm not sure if there is just no demand for them, or there might be a bigger consipiracy theory behind them. But maybe the market will force us to wake up to our relentless use of energy and opt for cheaper, cleaner alternatives.
I guess for as long as we have to protect those so-called national cars, we'll never get to see hybrid cars sold here at the sort of prices that average households can afford. Sad isn't it? I like the Toyota Prius myself.
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