Tuesday, December 15, 2009

malaysiakini on the FOOL (or FUEL) SUBSIDY...

The previous Minister wanted to restrict the amount of fuel sold to drivers of foreign vehicles but the idea was shelved after they realised the problems in implementing such a scheme.
So this malaysiakini article comes as somewhat of a shock when it is reported Fuel cap on foreign vehicles starts tomorrow. So far there has been no advertising campaign to advise motorists of the proposal and it seems the government is really short of both ideas and money.
Never mind that the new toy submarines will cost about RM300mil a year just to chase a few smugglers on the high seas.
This new fool subsidy scheme creates many problems for both petrol stations and motorists.

1.Since most petrol stations operate with self-serve pumps, they need to either employ more workers to prevent over-pumping. This restriction is redundant as the Customs also want to enforce the 20-litre tank rule when you exit.

2.Singaporean motorists will be hard hit as they have to leave Singapore with 3/4 tank of fuel and that could be some at least 40 litres in the larger cars.
I expect if this rule is enforced, hundreds of business owners will suffer like shopping malls, restaurants, car washes and even petrol stations.
JB could turn into a ghost town and places like Kulai and even Malacca will be adversely affected.

In order for such a scheme to work, the ministry needs to devise a "zero gain" petrol plan for motorists. The stategy is that you will leave the country without any gain in the petrol quantity.
What the customs needs to do is to enforce the 3/4 tank ruling for vehicles entering the country at all borders to make enforcement simple as that already covers the thousands of Singapore registered cars.
So there is then no need to restrict the fuel sold to motorists at petrol stations.
When the motorists leave the country, the customs will then check (or spot check) the 3/4 tank to ensure that no surplus petrol is taken out.

To the enforcement authorities, I would advise the KISS principle (Keep It Simple, Stupid!) Asking petrol stations to be part of a hare-brained scheme is not tenable.

1 comment:

H J Angus said...

so they have exempted cars from Singapore and I think overall, the economy will not be adversely affected.