Friday, January 8, 2010

New Fuel Subsidy

New Year means new policies. The government has declared the new sugar pricing which follows with mix reactions, as normal.

But what ones afraid of the raise has turned to reality. The result is shortage in sugar supply . Soon we will see some adjustments been made on foods and drinks pricing.

Latest, the Government has announced that a new fuel subsidy is in the pipeline and will be implemented sometimes in May this year.

The Government has sounded innovative and come up with 'brainstorming' that the fuel subsidy will be based on the vehicles cc.

Is this fair justification? Very subjective. It might be true that lower income groups will consume vehicles with lower cc but it is not always true. Some people will opt for smaller capacity based on the basic needs as well.

Some people just make enough to utilize bigger capacity vehicles either they really need or based on social status.

Some who earn quite some hefty incomes might not feel the pinch as they are equipped with companies cars.

So, hopefully, the Government will do further studies to ensure the distributions of subsidies are considered in every aspects.

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