Talk Only Mah!: Some ideas on Solving Subsidized Petrol Problems in Malaysia

Talk Only Mah!: Some ideas on Solving Subsidized Petrol Problems in Malaysia

Just to review what happened after I had written my previous post (as back-linked above) and Bolehsia had a price hike of petro:

(1) Cut the Bleeding Arm - Okay, not full market price but a good meaningful step.

(2) Rewards and Penalties - RM625 is good subsidy for those 1.6L and below, but too linear for those 2L car owners.

(3) Let them Dog Eat Dog for Malaysians' sakes - This is the most disappointing part. Read the news below:

KUALA LUMPUR - MALAYSIA increased the sales commission for gasoline station operators on Wednesday following complaints that profit margins had fallen in the wake of a recent fuel price rise, officials said.

'The government has taken a very big step. ... We are accepting the offer,' Mr Zulkifli Mokti, vice-president of the Petroleum Dealers Association of Malaysia, said.

He said the government increased the commission from 9.5 sen (S$0.04) to 12.19 sen (S$0.05) on every liter of gasoline sold and from 4.5 sen (S$0.02) to 7 sen (S$0.03) on every liter of diesel sold...

Why not let the market supply and demand work it out? Let the poorly run petrol stations go bankrupt mah! Talkandshare Mah!