27-11-2025, 01:00 AM
![[Image: Mordusian-Times2.png]](https://i.ibb.co/4gRffFjV/Mordusian-Times2.png)
Compromise saves cabinet
First crisis averted, energy solution also reached
April 5686 (backdated)
Randworth - Prime-Minister Woodford has announced that the cabinet has resolved the crisis regarding the fuel subsidy and at the same time the budgetary crisis. Though not entirely to everyone's satisfaction, especially not the opposition of the National Party. Last month it became apparant that the coalition government suffered from an internal crisis thanks to the increasingly overly expensive fuel subsidy that was instated to stabalise the fuel prices that hiked during the Vamaj crisis.
The Prime-Minister together with the minister for economic affairs, the minister for infrastructure and the minister for enviromental affairs made a joint statement saying that the cabinet would propose to the parliament a new bill to revise the budget and the subsidy for fuel. It will be slowly phased out over the course of 2 years. The government will instead try and solve the problems of the lacking oil refinaries and oil reserves within the country.
To do this, the Minister for Economic Affairs, David Scott, stated that the government will invest in the Mordusian Royal Oil Company to build refineries and fuel tanks within the nation to build up oil and fuel reserves as well as the capacity to make fuel within our own borders. The current capacity is near non-existant or severally lacking, with only a few private companies holding these capacities to keep their own operations running. Most fuel is exported from either Luthori or through the Vamaj network to Mordusia.
Originally the Oil Company wanted to hike up the prices more to pay for the costs. Though the prices of fuel and oil have since stabalised to largely the level of prior to the crisis, it remained a political sensitive topic. It could cause huge inflationary hike and economic turmoil within Mordusia. On top of that the Reform and Labor Parties arent too keen on hurting their voting base.
The Prime-Minister together with the minister for economic affairs, the minister for infrastructure and the minister for enviromental affairs made a joint statement saying that the cabinet would propose to the parliament a new bill to revise the budget and the subsidy for fuel. It will be slowly phased out over the course of 2 years. The government will instead try and solve the problems of the lacking oil refinaries and oil reserves within the country.
To do this, the Minister for Economic Affairs, David Scott, stated that the government will invest in the Mordusian Royal Oil Company to build refineries and fuel tanks within the nation to build up oil and fuel reserves as well as the capacity to make fuel within our own borders. The current capacity is near non-existant or severally lacking, with only a few private companies holding these capacities to keep their own operations running. Most fuel is exported from either Luthori or through the Vamaj network to Mordusia.
Originally the Oil Company wanted to hike up the prices more to pay for the costs. Though the prices of fuel and oil have since stabalised to largely the level of prior to the crisis, it remained a political sensitive topic. It could cause huge inflationary hike and economic turmoil within Mordusia. On top of that the Reform and Labor Parties arent too keen on hurting their voting base.
To prevent this the government decided in the compromise that it would not only phase out the subsidy but also try and make sure the prices remain stable, even during a crisis. A deal was made that the refinery and reserves will be co-owned by the government and the Mordusian Royal Oil Company. The Oil Company can buy the government out whenever they can or want without having to raise the prices of fuel.