Countries with subsidised gasoline
A number of countries subsidize the cost of
petrol/gasoline and other petroleum products. Subsidies make transport of
people and goods cheaper, but discourage fuel efficiency.
In some countries,
the soaring cost of crude oil since 2003 has led to these subsidies being cut,
moving inflation from the government debt to the general populace, sometimes
resulting in political unrest.
Fuel subsidies are common in oil-rich countries.
Venezuela
In February 2010, the Iranian government
implemented an energy price reform by which the energy subsidies were to be
removed in five years; the most important price hike was in gasoline, as the
price went up from 100 rials ($0.10 US) to 400 rials ($0.40 US) per litre, with
a ration of 100 litres per month for private passenger cars (later reduced to
60 litres per month).
On 26 December 2010, the Bolivian government
issued a decree removing subsidies which had fixed petrol/gasoline and diesel
prices for the past seven years. Arguing that illegal export (contraband) to
neighboring countries was harming the economy, Bolivia
Malaysia
Malaysia spends
US$14 billion subsidising gasoline, diesel and gas each year. Effective 5 June 2008 gasoline prices
increased by 40% to RM2.70/litre (US$3.30 a
gallon), from RM1.92/litre (US$2.32 a gallon). Diesel prices rose by
RM1.00/litre to RM2.58 (US$3.04 per gallon), a 63% increase. It was announced
that price increases were planned to bring fuel prices in line with global
market cost, suggesting that it may hit US$3.80 per gallon by August. The
Malaysian government has also announced a one-off cash rebate of RM625 per year
to Malaysian citizens who own cars with an engine capacity of 3,000 cc or less
and RM200 tax rebate to cars with an engine capacity of 3,000 cc and above to
offset the increased costs. The
government introduced a temporary ban on buying fuel within 50 km of the
country border, but the ban was suspended following a price increase on 7 June
2008 for petrol of 41% (to MYR2.70 a litre) and for
diesel of 63% (to MYR2.58).
On 22 June 2008, the Malaysian government
announced plans to set up separate pumps at its border petrol stations to sell
fuel to foreigners at market rates so that only locals can benefit from
subsidised petrol. The new pumps will target Singaporeans and Thais who make
day trips across the border to fill their tanks with cheaper fuel there,
although Singapore-registered cars must have their tanks at least ¾ full before
they will be permitted to leave Singapore in any case. Petrol stations within
50 km (31 mi) of the country's northern border with Thailand and southern border with Singapore would be affected. Recently, the fuel price has dropped
until MYR 2.45 and it has dropped for the second time. A further reduction was
made on 1 November 2008. RON97 petrol was reduced from RM2.30 a litre to RM2.15
a litre, RON92 petrol from RM2.20 a litre to RM2.05 a litre and diesel from
RM2.20 a litre to RM2.05 a litre. The Government revealed that it had ceased
subsidizing petrol as of 1 November 2008 when the price of oil dipped below
US$65 per barrel. However subsidies were still being paid for diesel and
natural gas.
On 18 November 2008, the Malaysian government
made further reductions in the price of gasoline cut pump prices by seven per
cent to RM2.00 ringgit per litre and diesel by 15 sen to RM1.90 per litre. The
government said that at current prices they were making about 30 sen per litre
in sales. Then again on December 3, petrol prices were reduce further. Gasoline
prices were reduced 10 sen to RM 1.90 per litre and as for diesel, they were
reduced 10 sen to RM 1.80 per litre. On
16 December 2008 the price of RON97 petrol is was reduced further to RM1.80,
while RON92 is selling at RM1.70 a litre. The pump price of diesel was reduced
to RM1.70 a litre.
From 1 September 2009 however, the price for
RON97 increased to RM2.05, while RON92 has been discontinued and replaced with
RON95, at a price of RM1.80. On 16 July 2010, petrol prices across the board
was raised by 5 sen, which brought the prices of RON95, RON97 and diesel to
RM1.85, RM2.10 and RM1.75 per litre respectively. Since then, RON97 floats with
government controlled revision reflecting the global crude oil prices. As of
1 August 2010 only
Malaysian-registered petrol vehicles may purchase RON95 fuel;
foreign-registered vehicles (mainly from Singapore
and Thailand
On 1 April 2011, RON97 increased from RM2.50 to
RM2.70. In May 2011, RON97 further increased to RM2.90, another record high for
RON97 in Malaysia
On 3 September 2013, due to Malaysian economy
feels economic downturn, PM Najib decided to increase the price for RON97 from
RM2.70 to RM2.85, RON 95 from RM1.90 to RM2.10 and diesel from RM1.80 to
RM2.00.
source: wikipedia
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