GRAPH OF DECREASING SUBSIDIES ON OIL RON95 IN MALAYSIA(2013 2014)

0
0.5
1
1.5
2
2.5
1-Feb-13 3-5
SEPTEMBER
2013
Feb-14 2 OKTOBER
2014
PRICE OF RON95 IN
MALAYSIA(RM PER LITRE)
SUBSIDIES ON RON95(RM
PER LITRE)
COST OF LIVING INCREASE(keburukan penurunan subsidi)
Based on the graph, we can see that the RON95 fuel subsidies provided by the
government is decreasing from one date to a specific date. This causes the cost of living
increased, particularly middle-income earners and the poor who use a lot of fuel. This has led to
concerns in the minds of the people. This is because they use a fuel source to move from one
place to another for economic activities that contribute to the national income. When the RON95
fuel subsidies given to the people reduced, fuel costs are the responsibility of the people who had
to be increased, thus increasing the cost of living. As a result, household disposable income will
decrease and they will find it difficult to survive.
NATIONAL INCOME INCREASE(kebaikan penurunan subsidi)
The graph above shows that the price of RON95 fuel rising and rising. RON95 fuel is
usually used by Malaysians when compared with other fuels such as RON97. This is because
fuel RON95 compatible with most vehicles compared to RON97 compatible with certain
vehicles. Malaysian government obtained the fuel from petroleum tax, income tax, dividends
from Petronas and Petroleum Export Duty, Petroleum & Gas Royalty. Revenue is estimated to
increase from one year to another. As a result, state revenues will increase. Therefore, the state
can use the results as quickly as possible to manage and develop the country to become a
developed nation by 2020.