On 7th Jan 2010, the Domestic Trade, Cooperatives and Consumerism Minister, Datuk Seri Ismail Sabri Yaakob said that "the bigger the engine, the higher petrol will cost.” According to the Datuk, the assumption for this proposal is that those in the lower income group would normally drive a car with a lower engine capacity and thus be eligible for the subsidy.
This must surely take the prize for half-baked policies!
The Datuk's assumption is certainly flawed. I know of a Pakcik in my hometown who drives a 25 year old 2.4 litre Honda Accord because of the reliability of Honda cars. I do not know for a fact whether this Pakcik is of the lower or middle income group, but he told me that he can only afford to drive very old Honda cars. So, I guess I can safely draw the conclusion that this Pakcik certainly deserves to benefit from the government's fuel subsidy. Unfortunately, due to the capacity of his car's engine, he will have to pay a higher price for fuel if this half-baked policy indeed comes into effect.
So my question to the government : how will the government treat fairly people like this good Pakcik?
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