Subsidy Cuts to Boost Economy

         As told by The Star newspaper online on May 25th 2010 which it was reported by Teh Eng Hock. The Fuel Subsidy is reduced gradually to boost the economy of Malaysia and attracts more Oversea investors as told by AmResearch senior economist Manokaran Mottain.

- Current 2010 Price – RM1.80 /liter RON95

- Q3/Q4 2010 Price Hike – RM1.95  /liter RON95

- 2011 Price Hike – RM2.16  /liter RON95 (broken into 2 hikes, once per 6 months)

- 2012 Price Hike – RM2.20  /liter RON95

- 2013 Price Hike – RM2.34  /liter RON95

- 2014 Price Hike – RM2.52  /liter RON95

- 2015 Price Hike – RM2.60  /liter RON95

- 2016 onwards will have RM2.60  /liter RON95

        The proposed hikes are just for RON95. The RON97 was not mentioned in it which government will further decreasing the subsidy and it might reach up to RM3 by 2015.

       Besides that, the proposal recommends that the government renegotiate the PLUS toll concession contract this year and the LDP contract by 2013, then all toll concession agreements must proceed without any subsidies, resulting in a toll hike of between 10% to 67% depending on the highway, distance, etc from this year onwards.

The current average price of fuel in Somalia was US$0. 91 (RM3) per litre.

Remove Subsidies Gradually *Updated on May 29th @ http://thestar.com.my/news/story.asp?file=/2010/5/29/nation/6363006&sec=nation