Tuesday, November 25, 2008

NO to fuel price floor!

What the .... is Shahrir trying to do, putting a floor on fuel price!

Come on lah he made the biggest blunder in Malaysian economy now he wants to put a floor on the price of fuel. Let say the price goes down to USD40/barrel, who is going to get the profit? Petronas? Cronies? Malaysian consumer will be paying premium on our fuel. An indirect tax on our fuel consumption! We agreed to forego our subsidy but not on putting a floor.

If the government really want to put a floor there should also be a ceiling on the prices, let say not more than RM3 if the global crude oil goes higher than USD180/barrel.

By reducing the fuel price, the consumers will have more disposable cash to spend, in turn, the spending will help spur the economic growth, especially during economic strife where we need domestic consumption to boost the GDP.

Is that very hard for Shahrir to understand? I think our Malaysian Ministers (including PM & DPM) need to attend Economic 101 again.

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