When enforcement officers sleep on the job
FocusM | 20 Jul 2018 00:30
As an oil-producing country, the rising price of crude oil should be good news to Malaysia. After all, for each US$1 rise per barrel of Brent crude, the country stands to gain RM300 mil in extra revenue.
Post-GE14, the crude oil price has remained above US$73 per barrel, rising to a high of US$79.44. The government says its coffers got an extra RM1.77 bil.
The only problem is, nearly 80% of that extra revenue is being used to subsidise fuel at the pump. That’s because since GE14 on May 9, the new Pakatan Harapan government has been keeping the price of RON95 at RM2.20 per litre.
It spent RM1.4 bil on RON95 fuel subsidies between May 9 and July 16, which works out to between 17 and 30 sen per litre. That raises a question – how effective are the billions of ringgit spent on fuel subsidies in keeping a lid on rising prices?
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