I think the general consensus in this forum, and to a lesser extent the general public (based on what I read in CBT, similar rantings for the past few months), is the rakyat wouldn't mind to pay higher for fuel provided the protectionist measures are removed, and we Malaysians pay "real" world prices for our cars, roadtax included.
I'd agree with the calculation done by Traveller, even if I am paying RM1/liter more for unsubsidised fuel, say with a usage of 300 liters/month, I'd only incur RM3600 extra expenditure per year, which is much lesser than the amount of tax I paid for the car (the tax paid can easily covered the extra expenditure for more than 20 years).
If the government is serious about removing subsidies, it should look for a total solution and removal of all subsidies hindering the progress of this nation, rather than selectively removing and yet protecting others which in general will increase the cost of living, in what is a country that is grappling with wealth creation problems.
Cheers