Thursday, April 25, 2013

Around the world, fuel subsidies are economic ticking time-bomb

Indonesia seeks to tackle explosive fuel subsidies | Free Malaysia Today: "JAKARTA: The Indonesian government’s pledge to reduce generous fuel subsidies which will push up prices for motorists has taken it onto politically treacherous ground before elections in 2014."
Due to competition, many countries around the world subsidize transport fuels. This has spurred their local economies, but made them dependent on cheap fuel. Now that peak oil is here, there will be great suffering and upheaval. Nigeria recently narrowly escaped revolution recently and had to roll back subsidy cuts. Look for this process to continue.

No comments: