Fuel Increase ... for the better ?

From economics view, the removal of the fuel subsidy is a good thing. Subsidies and tax distorts the free market mechanism. All textbooks says that. Personally, I think it is true.

At this point, I sense that some people are ready to strangle me .. phew !

At a subsidized price, everyone continue to be in a comfort level, enjoying the fuel as if it is a renewable energy. There isnt an urge to change the lifestyle despite all the talk. This is just plain human nature.

Imagine this,

Fuel prices no longer subsidized, after the hoo-haa died down, people will do whatever they need to do to curb / reduce the usage of fuel. More people will be taking mass transportation. Then we'll have more disgruntled mass transportation users. When the collective voices are loud enough to call for an increase urgency for better mass transportation, then only our dear government will get things moving. Maybe the voice wasnt loud enough in the past or the govt is selectively deaf -- who knows.

In desperate times, human usually become more creative and resourceful, and performs his best. Maybe then, more automobiles will be designed to be more fuel efficient to meet market demands. Maybe then, solar cars will be in high demand in the country.

The silver lining for all these events could be a better / more efficient use of fuel and reduce the fuel/capita usage, and indirectly reduce the air pollution. Then indirectly reduce global warming issues. Aint this a good thing after all :)

Of coz .. they'll be a period of darkness before the end of the tunnel. Then again, if it is the right thing to do. It should be done.

Note : PM just announced the fuel price will increase to RM2.70 per liter.