I had a call with my colleague in Malaysia today and nowadays that casual "virtual coffee" talk is beside the weather also about the soaring gasoline prices.
I learned something you totally can you add a role model for a country caring for its citizens - especially the average driver and SMEs who rely on their car for commenting to work or their daily business.
Although Malaysian consumers currently pay RM 2.05 (USD 0,49) per liter for the RON95 grade of petrol, the actual cost of the fuel had reached RM 3.70 (USD 0,88) per liter in March, which means that the Malaysian government covers the difference of RM 1.65 per liter.
For perspective, the unsubsidized our ON97 grade of petrol was priced at RM 3.75 per liter this week, through a 30 sen spike.
The average driver in Malaysia receives a government subsidy of 45% of the total price.
For example, the German government adds nearly 50% of VAT, energy tax, carbon fees etc., making the opposite move and making money on the climbing energy prices. What is the price of a liter gasoline in your country, and how does your government react?