Sunday 11 November 2007

Battling increasing petrol prices

If you were to look into this page, you will find that the government is actually subsidising petrol prices at a greater expense. I don't really understand why would the government needs to do that.


Think about it. Malaysia produced gasoline for vehicles and diesel for public consumption. If we can produce petrol and diesel, why do we need to pay so much for it then? I don't really understand. Well, not if Petronas were to sell the gas and petrol to foreign country and we buy foreign petrol and diesel at a discounted price... Hum...that explains why the government is subsidising for the public.


To an extend, I feel that petrol and diesel prices have increased tremendously over the last ten years. It is more important nowdays because fuel prices will continue to increase. I think the government is correct to say that let the rich pay more while let the poor enjoy the lower tax on petrol or something to do with vehicles. I can see that the government might be interested in coming up with a higher tax band for 4x4 or gas-gastling vehicles.


It is quite common in the UK for people to pay more for their insurance and also for their road tax if their vehicle were to go above a certain capacity. The CO2 emmission is also crucial in the UK because the more pollution that the vehicle is going to do to the enviornment, the driver would have to pay more for the insurance and tax. That is the final thing over in the UK. I think it is just fair.

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