Financial Times FT.com

Asia over a barrel on subsidies

By FT Reporters

Published: May 22 2008 18:32 | Last updated: May 22 2008 18:32

Crude oil’s rise above $135 a barrel is forcing a rethink in much of Asia about the cost of maintaining long-standing fuel subsidies designed to protect consumers.

The steps to rein in such subsidies announced on Thursday by Taiwan, Malaysia and Indonesia represent brave moves by governments that have long seen such subsidies as central to political stability.

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