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Petrol subsidy, what subsidy?
Malaysians have been deceived for so long that we have been subsidized for our petrol. In fact we have been paying more than our fair share for our petrol. How is this? We need to look at the big picture of petrol prices, the price of cars, toll charges, per capita income and the cost and efficiency of public transportation.
I am glad that our Minister of Information made a comparison of petrol prices in Malaysia and some Scandinavian countries. Let me make a simple comparison between Malaysia and Australia to show that we have been cheated all these years.
1. Per capita income of Australia (USD35,990.00) is more than 6 times that of Malaysia (USD5,490.00) in 2006. (Source: World Bank)Assume we buy a similar new car in both countries, a 1.8L Honda Civic Auto cost RM110,000.00 in Malaysia and AUD24,000.00 (RM72,000.00) in Australia. That is a difference of RM38,000.00. If we divide the price differential of the car with the cost of petrol, 38,000/2.55=14,900 liters of petrol. This means that an owner of a Honda Civic will upon consuming the first 14,900 liters of petrol is actually not getting a single cent of subsidy from the overnment.... selanjutnya.
2. Starting pay of a graduate in Malaysia RM2,500.00 per month and in Australia AUD4,000.00 (RM12,000.00) per month.
3. Price of one liter of petrol in Malaysia RM2.70 and in Australia AUD1.75 (RM5.25). The price differential is RM2.55 a liter.