Of the best time to kill off the fuel subsidy

Call me crazy but with global crude oil prices having more than halving since it peaked at close to USD150 per barrel, this is definitely one of those rare opportunity to make a permanent structural change to the economy by effectively eliminating the fuel subsidy.

The growth rate of subsidy size at the current prices must be relatively small compared to months ago. Back in June, Malaysians saw retail fuel prices jumped by approximately 40%. Since then, somewhat in tandem with falling global prices of crude oil, the Malaysian government has decided to significantly reduce the fuel prices though we have yet to see it match the prices we saw prior to the hike in June.

Why is the current environment provides the best time to do this?

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