How many of us can afford to lose RM7.8 million per day?

How many of us can afford to lose RM7.8 million per day?

This was an article about petrol subsidy rationalisation. Why do people from other countries love our petrol? (click to read) As a taxpayer, I hate it when strangers from other countries are benefiting from our subsidy and the government is spending tax money on further making others rich instead. Plus all the greedy station owners who chose to NOT to stop these purchases by foreigners who do not qualify to receive subsidies from our tax money.

So, how much was lost every day? Well if we calculate the RM1.20 increase as the subsidy, then it’s RM1.20 times 6.5 million litres of diesel per day. This comes to RM7.8 million per day or RM2.85 billion per year. The question is thus, why not do this earlier and wait until recently?

The next question is… how many litres of RON95 is LOST due to these strangers stealing our petrol and our subsidy? Yes, the right word is STEALING and anyone who is NOT a Malaysian should stop pumping so much petrol yeah. Unless of course you are driving within Malaysia and spending money on hotels, food, entertainment etc.

Article in themalaysianreserve.com The Ministry of Finance has concluded that at least 6.5 million litres of diesel were misappropriated by industries or smuggled into neighbouring countries daily before the targeted diesel subsidy was implemented.

Finance Minister II Datuk Seri Amir Hamzah Azizan stated that the rationalisation of diesel subsidy has resulted in a 23 percent or 6.5 million litres reduction in daily sales, at petrol stations in Peninsular Malaysia.

He noted that in early June the average daily diesel sales was 28.6 million litres, which dropped to 22.2 million litres in early July 2024.  

“This conclusion is supported by data showing that daily commercial diesel sales have increased by 4.8 million litres over the same comparison period. Do read here for the full article: Article in themalaysianreserve.com

Subsidy cannot continue forever. Just make sure the subsidy savings go to the needy instead.

We can debate until the cow comes home but subsidy distorts the market. It’s like a never ending drug which the longer we keep it in place, the more expensive the subsidy would be. However, once prices move up, then people will think of ways to reduce their consumption and those strangers who are not Malaysians would also not be able to buy them too.

Anyway, even after subsidy rationalisation, the price of RON95 in Malaysia is likely to be lower and people may still try to take advantage but that number will be far lower than today. Let’s see how much all these alternative energy can reduce oil consumption further in addition to the rising sales of Electric Vehicles (EV). Here’s one latest article about the latest update for EVs: More charging stations in Malaysia for EVs!

Thanks for plugging the loss of RM7.8 million per day. Perhaps time to do the next one too.

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