The RON rush in Puchong last nightThe 20 sen/litre increase in RON95 petrol and diesel price h e r e created long queues at petrols stations last night. Some waited as long as 45 minutes (imagine the fuel they were burning) to cling on to the subsidy.
There is good news and there is better news. The good news is that the savings from the 20-sen increase will be enough for Najib Razak to double the BR1M money menat for the lower income, something the PM's likely to announce in the Budget later this year. The better news is that Malaysia is now committed to a subsidy rationalization program which will ensure subsidies don't go to people who don't actually need or want a "tongkat".
The fiscal committee meeting chaired by Najib, which decided on the gas price increase yesterday morning, will meet again in February 2014. I think the committee should meet more often. say every three months.
To find out how much the 20-sen hike will impact you (if you are the average Malaysian), read HishamH's sassy analysis h e r e.