Wednesday, May 28, 2008

-That's some OIL-y Business-

A trip up north may not be as enticing anymore with the implementation of the proposed ban on sale of petrol and diesel to foreign registered vehicles within a 50km radius of the borders.

A few years ago, it was proposed to increase the causeway toll charges for foreign registered cars to RM 20. At present, our drivers are paying only 2.90 at the Woodlands Checkpoint & 10.80 at the Second Link. So how permanent is the proposed ban?

Qn: Will this solve the abuse on fuel subsidies?

Ans: Maybe. Logically, We will be less likely to cross the borders and travel 50km to pump fuel and travel another 50km back into their homeland. So, naturally the abuse on fuel subsidies would be less right?

WRONG!

This ban will probably create a grey area in the market. Just imagine….

Foreigners want to pump cheaper fuel yet still do not want to travel the extra 50km. He drives to a pump and stops. Next thing you know, he’ll get down the car and smoothly says “full tank” to the pump assistant, shakes his hand and smile.

Yes, I’m talking about bribery. No matter what policy there is, it is always a place where money speaks louder than the law.
Got pulled over cos you were speeding? Ka-ching!!
Passport expiry date is less than 6 months? Ka-ching!!

Problem
They need to cut down the subsidy bill especially with the rising cost of crude oil. Yet, they are in no position to raise prices of fuel & basic food items after suffering its worst ever result in the elections.

Proposed Solution
Ban border fuel sales to foreign registered vehicles.

Motive
The ban would instantly create opportunities for her people to increase revenues of income through bribery. The extra money would come from foreigners and not through state funding. The people will be appeased without them spending. Thus, killing two birds with one stone.
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.
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Who said we have stupid neighbours?


| @ 1:16 PM|

- xoxo -