Malaysia is an oil producing country and therefore when its citizens are adversely affected by its domestic fuel pricing system it suggests of a less than thorough management of its hydrocarbon asset.

Firstly, in the context of an oil producing nation, there was no necessity then and now to term the Malaysian fuel pricing as ‘being subsidized by the government’ [ostensibly for the benefit of the rakyaat]. Simply, Malaysia is an oil producing nation, and it follows her citizens get to enjoy some benefit from a lower than world market rate fuel pricing system. Period. For a government to curry that mileage then[cheap fuel], she must also bear the burden now[higher cost of fuel].

Secondly, hydrocarbon is but ‘black gold’, an ever diminishing natural produce, which requires million of years to form. Thus managers entrusted to maximize hydrocarbon as a national wealth should have justified their worth by providing adequate guiding wisdom to cushion the impact should hydrocarbon pricing systems break loose.

So the question then: given a balanced management of Malaysian hydrocarbon reserves, why should the government find it necessary to quote the rising world crude oil price as the main reason for hiking up the national fuel pricing system? Shouldn’t the domestic fuel pricing system remain quite constant thru the ranges of world pricing escalation/de escalation? Is not this a straight forward case of mismatching forecasted hydrocarbon resources versus national fuel demands?

To ever begin a cure to this national issue, the Malaysian government must admit the root cause of mismanagement, and clearly pin point where the current system has fallen tru the gaps. One strong area to analyze is the mismatch of forward and future oil contracts, its contractual obligations, and its national forecast on fuel demands.

Embarking on a cure, the government of the day to remove any spins and honestly describe its problems and its directions for recovery. The Malaysian government can start by explaining away the word ‘subsidized’ fuel pricing.