Friday, 6 June 2008

The "fuel-out" guy

If there is a key performance indicator (KPI) for our Prime Minister, he failed miserably. The latest snafu he committed is the fuel price increase. Not just that, he's hiking the tariff of electricity, too.

I noticed there's a lot of inconsistency in the statements made by the Prime Minister and the Minister of Domestic Trade & Consumer Affairs, Shahrir Samad prior to the announcement on 4 June. In fact, the announcement was postponed from 30 May to 4 June.

The decision made by the government was a very shortsighted one. At first, they wanted to ban foreign registered cars from filling up gas within 50km of the north and south borders. Then, they wanted foreign registered cars or foreigners to pay market rate.

Following that, there were a lot of protests from various quarters. Obviously, the government was just thinking out loud. They didn't have the subsidy structure ready. Or maybe they have no clue of how to do it. Really. Read on.

On 4 June, all the information officers of the government machineries were gathered for a briefing on the fuel hike and the new subsidy structure. Apparently, they were told that there will be a 50 sen increase for gas. There were no mention of new electricity tariff.

Later in the day, when the announcement was finally made, the government informations officers themselves were stunned.

This is very alarming. How can the sharing of information within the government be distorted? This is a very important public information. How do the government expect their information officers to manage the perception for them if they're not consistent with their decision? If the material for the information officers was correct for the briefing, then someone might have made the PM changed his mind at the 11th hour. Who's the culprit?

Even if I don't know what's behind the scene, I still believe that the current government is so indecisive.

I suspect that when the government decided on a flat rate for all, perhaps the gas station operators didn't have the system to do the double tier pricing. The government should have spoken to the association of gas operators in Malaysia and check with them on ways to tackle this issue. They shouldn't make any public statements, only to get the affected parties to object to the proposal and in the end, we the Malaysians have to suffer.

I was initially very grateful that Malaysians will get to pay a decent rate for gas while the foreigners will have to pay at market price. It's fair (or selfish) because we're the taxpayers. But then, it wouldn't be fair to foreigners who pay tax to the Malaysian government.

If I could advise the government, the price of gas will have to be at market rate. However, MyKad holders will get a discount. Of course, not a 30 sen discount. The discount should translate back to the old price. So, when the foreign cars from Thailand and Singapore or foreigners not issued with Malaysian ID come to the country, they'll have to pay full price. I believe foreigners who reside here have their own Malaysian ID. They can use that ID to purchase gas at a discount, too.

That way, we're not depriving foreigners from filling gas in our country. They're most welcome here. But they cannot take advantage of our subsidy. That's all.

If the government cannot implement that now because of lack of instruscture, they can always postpone it to a later date. After all, Shahrir earlier leaked the information that the price hike would only be in August. He must have a good reason to say so. Meaning, the government can afford to wait till August, if they want to. In the end, the increase is now.

If Aquaria can have two tier admission fee, so can the gas stations. No infrastructure in place? Ask Aquaria for advise. It's not a new technology. It's a matter of installing them at the premise.

It really made me sick when I read a news piece quoting the Singaporeans who are relieved with the rates. It makes me wonder if this whole thing is to please the Singaporeans. And I just can't believe that our government had the heart to say that the new rate is still lower than Singapore. But their the per capita income is three times higher than ours.

I read with great interest, the remark made by Petronas that it could go bust by 2018 if they keep giving money to the government to buffer the local economy. It claimed that while the price of oil has increased globally, the expenditure for exploration is getting expensive.

Points taken. I know that oil exploration in our region is no longer on shallow waters. But there's potential in deepwater exploration. And yes, it's very costly. However, I don't believe that Petronas' profit margin is slim. They can still make money with the global price increase and they should give Malaysians some discounts. After all, we're a net oil exporter.

Petronas remarks about "giving money" to the government also gives me the impression that our national reserve is not very healthy. As if, the government has to rely on Petronas alone for money. It makes me shiver. No wonder Hassan Merican of Petronas is referred to as the de facto Finance Minister.

Pak Lah is so unbelievable. He wants to continue "serving" the rakyat despite calls for him to quit after the general election. But he's messing the country even more. He's not a problem solver. He creates more problems for the whole nation.

The increase in price of food globally is inevitable. So does the price of oil. But we need to find ways to buffer the impact. Instead, our government wants us to suffer. And then, they use the gangster tactic to school bus operators for example - "don't increase your fare." How do the government expect people to function and do business?

I know Pak Lah is not going to call for a snap election although the Election Commission has issued a standby notice to its officers. This is in view of MPs jumping ship. But with this latest development, Pak Lah will fall flat on his face if there's a snap election.

For someone who has lived to witness May 13, I don't want to see an unrest that will force a snap election. It's better for Pak Lah to step down and give way to others who can think more objectively.

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