04 June 2008

Fuel hike

I had no intention to blog actually but over dinner just now, my sis received an sms from her friend that fuel price for RON 97 will increase by 78 sens per liter and diesel will increase by RM1 effective midnight. This is not a rumour. Star Online and RTM news has confirmed it. The petrol stations are jam packed with cars, all thanks to the new fuel subsidy scheme that was announced today. How do I know when I'm sitting here blogging, one may ask. Well, I just came back from a car ride. "Wah, so rich until can go for car ride, huh?" one may ask. Well, I accompanied mum out in hope of going to the nearest petrol station to pump full tank for her car since what will serve every Malaysian a full tank at this point of time will only get us slightly more than half full by midnight. Anyway, it was done in vain attempt as the queue to the petrol station was more than 1km long. So we gave up because we thought it was pointless to join the queue and burn more fuel while waiting. The petrol station across the road ran out of fuel... That was at 8:05pm.

Ironically, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad announced yesterday that Malaysia is planning petrol price hike in August. In early April, Datuk Seri Abdullah Ahmad Badawi said there would be no increase in the petrol price as this was the wish of the people. Then I stumbled upon this blog archive that mentioned that Datuk Shahrir Abdul Samad had told
Reuters in Putrajaya on 15th April, 2008 that Malaysia aims to keep fuel prices unchanged under a reform of energy subsidies to be launched this year by curbing wastage and smuggling in a move that could cool inflation. Furthermore, on 24th May, 2008, Datuk Shahrir Abdul Samad said that the government has NO plans to increase fuel price despite the price hike of petrol by 30% in Indonesia. On 31st May, 2008, Datuk Seri Najib Tun Razak quashed talks on petrol price increase. (Maybe he's not wrong cos priced of petrol is going up by 78 sens not 40 sens!!) And what happened today?? Datuk Seri Abdullah Ahmad Badawi announced an increase of 40% in the price of petrol. That’s the biggest increase in petrol price in the entire history of Malaysia.

But why am I complaining?? After all, our Prime Minister was the one who told the press on 12th February, 2008 that parliament would not be dissolved the next day. Then on 13th February, 2008, the 11th parliament was dissolved. Reason given for telling a different story on 12th February 2008: Agong's consent needed....

Each time the government calls for a petrol price hike, they tell us that a fuel hike is inevitable due to the rising crude oil price and that the oil price in Malaysia is still lower than other countries because our kind government is still subsidizing it. But who are they trying to cheat?? Read this to get my point. Increase the minimum wage rate in Malaysia and I shall reconsider my words. As if the salaries of those working in the private sector would be increased by 40%. Anyway, when the world crude oil prices fell below US50 per barrel in January 2007, did our government lower the fuel prices in our country??. Ask yourself. The onus is with you to decide.

Well, in 2006, when the Government announced an increase in the prices of petrol and petroleum products by 30 sen a litre causing RON 97 petrol to cost RM1.92 a litre, diesel RM1.581 a litre and LPG RM1.75 a kilo, Datuk Seri Abdullah defended the hike, saying that the estimated RM4.4 billion savings from fuel subsidy reduction would be used to improve the public transportation system. I'm currently residing in Sarawak, which is a state in Malaysia. Has the public transportation system here in Kuching, Sarwak's capital, been improved?? I don't think so but MAYBE the government did not allocate some money to improve the public transportation in Sarawak since Sarawakians are paying one sen less than our West Malaysian counterparts....

Today,
Datuk Seri Abdullah announced that to offset the higher fuel price, the government will offer rebates to motorists. Under the scheme, vehicles below 2,000cc will receive a RM625 rebate annually to compensate for 800 litres of fuel used under the new price. Motorcycles will be given a rebate of RM120. Okay, thank you very much, Datuk Seri Abdullah Ahmad Badawi, for the rebate (I really appreciate it but I would further appreciate your kindness if the rebate was more.) but is it enough to sustain our living especially with the cost of everything that will increase since Higher petrol price = higher logistics = higher cost = higher price in everything. Your guess is as good as mine.

Meanwhile, I shall have to change my lifestyle: go out unless necessary and really heed Agriculture and Agro-Based Minister Datuk Mustapa Mohamed's advice to eat less rice. But the price of flour has increased. The price of noodles has also increased. So what is left for me to eat?? Answer: eat fresh air and drink drain water to survive. Wait a minute, fresh air?? In the name of development, the environment is being sacrificed, and soon, Malaysia's green lungs will be snatched away right under our very own noses. Oh well, I will just have to starve in time to come. As if the government would care if I starve to death. For all I might know, they would be happier. Population control, they may call it. 27.19 million citizens minus 1.

But my question still remain: if our government can't afford to continue on subsidizing that much for our fuel, how could they spent RM792,325.20 for the use of executive jets by Prime Minister Datuk Seri Abdullah Ahmad Badawi and his deputy Datuk Seri Najib Razak between Feb 24 and Mar 7?? And I'm also wondering like this author here.

Anyway, who am I to complain?? I will just have to sit here and bemoan the fact that the majority had voted for this excellent government. After all, the 78 sen hike or 40 per cent increase for the RON 97 petrol is still below the anticipated RM4 per litre price projected earlier and among the cheapest in Asia, right??? If my memory serves me well, I remember learning in my Form 1 Geography that Malaysia produces oil too, thanks to Miri in Sarawak, Ketih in Terengganu and Sabah. Oh, my memory did not fail me. This site has proven my statement right... Hence, Malaysia can be considered to be an oil-producing country, isn't it? So is the new petrol price still one of the cheapest among the oil-producing countries?? Scroll down this website to find the answer.

For those who are still blur about the new petrol price, RON 97 will cost RM2.70 per litre and diesel will cost RM2.58 per litre effective midnight on 4th June 2008. If this is not enough to break your heart, Datuk Seri Abdullah Ahmad Badawi also said that Tenaga Nasional Bhd would be raising electricity rates by 18% for homes and 26% for business users. Fellow Sarawakians and Sabahans, don't be too happy because in the media statement issued by the Prime Minister's department, "Satu struktur tarif baru akan diumumkan tidak lama lagi bagi Sabah dan Sarawak."

I foresee a rippling effect: Increase in the prices of everything EXCEPT for our salaries....But if all businessmen can think like our brilliant Datuk Shahrir Samad, then there wouldn't be a spillover effect caused by the fuel hike. Price of goods wouldn't go up- that is IF all businessmen share the same view as our honourable Domestic Trade and Consumer Affairs Minister. Wait a minute, in March 2006, the then Human Resources Minister, Datuk Seri Dr Fong Chan Onn, suggested that employers should find ways to help their workers absorb the impact of the recent fuel hike, like increasing their transport allowance or implementing salary adjustment. As a pessimistic business student who isn't blessed with a brilliant mind unlike our honourable Domestic Trade and Consumer Affairs Minister or Dr Fong Chan Onn, I cannot bring myself to agree with their statements or thoughts. That is why I'm ranting instead of studying, and that is why I'm not the Domestic Trade and Consumer Affairs Minister, neither do I have a PhD in Operations Research/Industrial Economics (Heck, I'm only an undergraduate). Hmm, how I wish Dr Fong is my employer....

For now, I have to agree with Lim Si Pin that Datuk Seri Abdullah has created a name for himself just like his predecessors. From today onwards, I reckon that Datuk Seri Abdullah Ahmad Badawi will be known as Bapa Inflasi.

To all Malaysians, (*no comments*). You be the judge. The onus is with you, once again.

**Off to look for a less jammed petrol station now. Round 2**

By the way, will there be any round of fuel price hike in August 2008?? I don't know but I'm fearing the worst after reading from here that the government will scrap ceiling prices on petrol and diesel in August, and allow market forces to determine pump prices.

*sigh*
As if we are not feeling enough of the pinch of inflation.

Times like this and I wonder why I'm still living in Malaysia or why am I a Malaysian to start off with.
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Updated at 12:30am 5/6/2008: Queued up for half an hour at the Shell petrol station at BL at 10:05pm. Accompanied mum there again at 11:05pm to fill her car up only to know that we can only pump RM30 worth of petrol (at RM1.91 per liter). Still, it's better than nothing. Praise God. The queue at GR and Rock Road was Still SOoooooooo long when I was on the way home at 11:35pm. Thank you very much, Datuk Seri Abdullah Ahmad Badawi and his cabinet. I hope you will have a good night's sleep.... ZZZZZZzzzzzzZZZzz...........

2 comments:

SalamMedia said...

This is by far the most outrageous thing the Government has done.

RM 625 anually to cover 800 liters per year.

I hope in the near future, Malaysia will go greener with lesser Carbon to burn.

kj said...

Thanks Noktahhitam for your comments.

The RM625 annual rebate or road-tax reduction is not enough. But I am of the same view as you that Malaysia should go greener. Unfortunately in Sarawak, I don't think anybody is using NFG yet and I can't think of where to get my supply of fuel gas should I modify my car run on NFG. So I still have to stick with RON97 for the time being. But RM2.70 per liter??? *ouch, my not-so-deep pocket is getting shallower. Blame it on inflation*

Nevertheless, like it or not, we have to prepared for rainy days and get used to those days when fuel wasn't subsidized subsidy in view of the global spiraling prices of fuel, right?? *sigh*.

Anyway, thanks and best wishes.