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Oil prices: Don't compare apples with guavas

I refer to the Malaysiakini report Fuel hike: 78 sen more to RM2.70 per litre .

The whopping hike in petrol price is unacceptable given the fact that we are a net exporter of petroleum. Yes, we agree that the government is subsidising us heavily on petrol and we would have accepted a small increase. But a 41% increase is simply too much a burden to bear, despite the token cash rebate.

What is even more unacceptable is the enormously unscientific approach in justifying the increase – by comparing our petrol prices with a few countries like Thailand and Singapore.

Anyone who had been taught basic science would have been taught that when we investigate a certain factor, all other parameters must be constant. Take Singapore, for example:

  1. Singapore does not have petroleum and thus, imports all its petroleum needs. Therefore the RM5+ per litre petrol price in Singapore is not a surprise.

  • Singapore’s GDP is much higher than Malaysia’s, or in simpler terms, the income level of Singaporeans is much higher. A graduate teacher earns about double what graduate teachers here earns (in RM).
  • Singapore does not foolhardily embark on mega-projects in difficult times.
  • These are just some simple points but what I’m trying to say here is that we cannot just pick another country whose petrol price is much higher and compare us to them. On what basis? The BN government is simply comparing an apple with a guava.

    In the name of projects, the government says it must increase petrol price. Are these projects that important and critical to the point of passing the buck onto the rakyat? There will be a string of chain reactions – electricity tariff increase, transport charges increase, higher prices of goods, you name it.

    The government keeps telling us to adjust for difficult times ahead whilst all its mega-projects must go on. Come on, what projects are that important and critical that they cannot be scaled down or cancelled?

    You know the catch phrase around – ‘got project, got money’! I leave it to you to figure out the meaning of these four words. And that’s why the projects must go on.

    Therefore, if the BN government must pick another country’s petrol prices for comparison, please pick one on identical grounds – with the same parameters as Malaysia!

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