Malaysia's Oil Price Hike

From an economic perspective, this hike is necessary because Malaysians cannot sustainably afford to live in an artificial environment where oil is at a low price level. This move to raise the price has got everyone thinking about how to save petrol consumption, which is vital in the current global economic and environmental climate. Without such a move, Malaysians will continue to be oblivious to the pressing issue of the scarcity of energy resources in the world.

The rebate and discount given further emphasises the government's intention to curb our petrol consumption so that only the most necessary energy consumption is made. I believe that the amount of the rebate is a gross indication of the right level of petrol consumption that should be made each person. If one insists on using more petrol, then obviously he/she needs to pay extra for it.

It is true that the country is a net exporter of oil but do not forget that the oil that is not sold to us, Malaysian users, will end up being sold to outsiders at the higher market rate.

On how the implementation of the price hike, I believe that it could have been better. But that is not the main agenda here. Malaysia is one of the only countries on earth whose national investment in less than its subsidies. In the long run, we will suffer from the lack of good visionary investments. The right thing to do is to lower subsidies and use the increased revenue from high oil prices to invest in better public transportation system and other infrastructure that will yield long-term benefits to the country and its people.

Nevertheless, I totally understand why most Malaysians would rather have the nation's revenue be ploughed back to subsidise petrol prices than to invest in the country's infrastructure - aside from the fact that a lot of Malaysians are myopic and ignorant, there is also not much guarantee that the money will be channeled to better the country instead of being embezzled by the 'project tycoons'.

Any comments are highly appreciated.

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