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Message: <blockquote data-quote="ssmann" data-source="post: 479796" data-attributes="member: 18956">Here it goes....Under the Economic Transformation Programme (ETP) part of the 10 NKRA's, the Govt will abolish ALL subsidies on fuel. This is to happen in tranches/stages. Ultimately, regardless of how crude oil prices do, Msia will move to a floating price mechanism, similar to what you see in Aus/NZ where pump prices change daily and are also diff from operator to operator. The Automatic Pricing Mechanism (APM) which is what we adopt in Msia currently will cease to exist likely by 2013/4, wherebye oil companies are currently GUARANTEED a price by the Govt which is covered by the subsidy.In a nutshell, under current refining climate and assuming crude oil prices of around $90, the REAL price of a litre of RON95 fuel is about 2.70 - 2.90. Thus the Govt is currently subsiding about RM1 per litre. In 2 years time, it is likely we will pay about RM3 per litre for RON95, somewhat what the Singaporean's and Thai's pay for their fuel now....Removal of subsidies make economic sense, but what ticks me off is when such removal of subsidies are channelled to the building of iconic buildings and enriching the pockets of a select few!!!</blockquote>