Tuesday, 27 May 2008

Want Fuel? Think Again!

I am amazed at what the government can do or about to do. I do understand that there is always a reason for what the government has decided or about to do. The controversial statement now is to stop offering unlimited fuel to foreign registered cars (e.g. cars from Thailand and Singapore). The point here is that I do not understand why the government has taken such a drastic stand.

No doubt that oil prices have shot up tremendously and the government is thinking of increasing petrol and diesel prices in the end result but what is the point of informing petrol stations surrounding the borders (e.g. Johor and Perlis) to limit the sale of petrol and diesel to foreign registered cars? What is the purpose of it? Is the government trying to reduce the import of oil to fund the low cost fuels being sold in Malaysia? Oil prices are on the rise and I don't think the government can do anything about it. They can subsidies the oil prices but how long can they do it? I think what the government would do is to increase oil prices again. That would mean that both petrol and diesel prices will increase. In the end, whether the government is going to limit the sale of petrol and diesel prices to foreign registered cars or not, they would have to increase petrol and diesel prices.

If that is the case, why bother of limiting the sale of petrol and diesels then? Would it be beneficial to petrol stations when there are more demand coming from foreign states? It would be a good thing for the economy, right? I just don't know why.

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