Fuel subsidy may end in 2014
2008/05/11
JAKARTA: Malaysia may no longer provide price subsidy for fuel when it becomes a net importer of oil in 2014, said former prime minister Tun Dr Mahathir Mohamad. He said Malaysia was more fortunate than Indonesia now, as the Malaysian population was 10 times smaller and the country's fuel consumption was much less.
"Although Malaysia's oil production is smaller, we can export 250,000 barrels per day, and when its price increases, the government can provide subsidy," Dr Mahathir, who is also Petronas adviser, said yesterday.
He is here to give a speech at the convocation of Pancasila University.
When asked on his view about the increase in oil price, he said when domestic oil consumption exceeded production, the government would not be able to use income derived from the increase in the oil price to provide subsidy to the people.
He added that there was a need to look for alternatives, such as the use of manpower, which was abundant in Indonesia. This could be increased in terms of capacity and productivity to yield better income and reduce consumption of imported goods, he said. - Bernama
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