Removing the Gas Subsidy Crutch – Can Malaysia Do It?

Dateline 2012-XX-XX:

With the next general elections due by April 2013, and in light of recent political uncertainties, one crucial subject is relatively missing from public discussion: gas subsidies.

Gas is heavily subsidized in Malaysia, to the tune of $14 billion in 2008. [1] That keeps fuel prices in Malaysia at about USD$0.60 per liter for RON95[2], the regular unleaded fuel, while the premium RON97 goes at USD$0.91 per liter[3]. Diesel is priced at USD$0.56 per liter.[3]

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