Yes to no petrol subsidy

Talks have been rife about the increase in petrol price which was announced recently (right before the tabling of the national budget!).

Okay fine, it’s not an increase in petrol price. It’s really the reduction in subsidy for petrol. So what call it whatever you want, a rose is a rose by any other name.

So most of the talk about the petrol price or subsidy have been of anger and frustration of how inconsiderate the government is towards the people.

But I have to say, I totally disagree. I am in full support of the reduction of petrol subsidy in the country. In fact, it should be cut totally.

First, I’m a firm believer of the saying 'if you give a man some fish, he eats for a day. But if you teach a man to fish, he eats for a lifetime'. So no subsidies for me!

Second, and more importantly is that the price of petrol is really not the main issue. Everything surrounding it is what really matters.

According to Bjorn Lomborg, director of the Copenhagen Consensus Centre, in an interview with Freakonomics co-author, Stephen Dubner, petrol is usually subsidised in developing countries.

Lomborg adds that the subsidy is usually given by the government to appease the citizens because there might be something lacking elsewhere which they cannot fulfill.

Now it isn’t as bad as it sounds. Basically, what it means is that governments which subsidise petrol price could use that allocation for other more worthwhile things.

If petrol wasn’t subsidised, the finances that would have gone towards that could be put to use in sectors such as education and health care - both considered basic human rights.

Imagine all the money which could be channeled towards the education sector. I’m no economist here, but it could probably mean free education for Malaysians all the way up to the ivory towers.

As for health care, I do understand that Malaysia already has a pretty affordable public healthcare system. But more could be done.

Lomborg also made an environmental-friendly argument which is by cutting petrol subsidies, it will encourage people to look for other cheaper alternatives.

And there can be many other alternatives. Public transportation is one. This can reduce the number of vehicles on the road, which would in turn reduce traffic congestion and pollution.

They could also go for those electric hybrid cars so they can still drive but then don’t have to spend so much on expensive, non-subsidised petrol.

Anyway, these petrol subsidies aren’t really helping those who are really in need of help. Petrol is used by car owners and if someone can afford a car, he or she isn’t that hard up in life.

So when the petrol price is being subsidised by the government with the intention of helping the citizens, which group of citizens is really being helped? Not really the financially challenged, I suppose.

Now every time an announcement is made that the petrol price is increasing by a couple of sen, I smile in agreement because it’s the right thing to do.

Of course, it will be a slow process because imagine the outrage if 100 per cent of the subsidy is taken off! So it is reduced little by little over a long period of time.

However, I do hope that the savings that this will bring for the government will be put to use in the proper areas. There really is a lot that can be done right.