| Abstrakt: |
Malaysia and Indonesia are beginning to reduce long-standing fuel subsidies that have kept prices below market rates. Both countries have historically followed a model of exporting oil at high prices while providing subsidized fuel to their domestic markets. However, Malaysia recently cut its diesel fuel subsidy, allowing prices to increase by about 50 percent, and Indonesia allowed the price of its primary subsidized gasoline to rise by around 30 percent. These reforms are driven by the need to save money and the desire to increase investment in clean energy. However, the reforms are likely to be gradual, as policymakers are accountable to constituents who have long enjoyed inexpensive fuel. [Extracted from the article] |
