Brace! Brace! Brace!
Petrol prices will be increased by 40% and 63% effective 12 midnight 5th June 2008. The old price for petrol was RM1.92 now, it will be RM2.70 and the new price for diesel is RM2.58 as opposed to the old price of RM1.58.
Under the new system, people who use cars under 2000cc will be getting an annual cash rebate of RM625, while motorcyclists will be getting RM120. This cash rebate can be claimed when these people renew their road tax.
I am speechless. I really don’t know what to say about this.
Although, I have to ask the government this question, what the government intends to do with the savings in fuel subsidies as a result of the new prices?
What do people say about this?
“This is ridiculous. There would be more transaction costs to consumers and the government in claiming the annual cash rebate.”
“There would be a ripple effect as a result of this. The increase in the price of fuel would push transportation costs for businesses. This means, a lot of household products would become more expensive.”
“Will the government invest more money into public transportation system as a result of this?”
The problem with our country is, our costs of living keep climbing up but not with a faster pace than the climb in wages. As a result, our standard of living will fall. This might not be apparent now, but it will be in the future because this is where we are heading right now.
Increase in costs of living is good. But only if it is being followed by at least the same increase in wages. Because then, our standard of living will also increase. If things continue the way they are now, I’m afraid we would have to brace ourselves for the prospect of hyperinflation in the near future. So help us God!
SOURCE: paultan.org
Under the new system, people who use cars under 2000cc will be getting an annual cash rebate of RM625, while motorcyclists will be getting RM120. This cash rebate can be claimed when these people renew their road tax.
I am speechless. I really don’t know what to say about this.
Although, I have to ask the government this question, what the government intends to do with the savings in fuel subsidies as a result of the new prices?
What do people say about this?
“This is ridiculous. There would be more transaction costs to consumers and the government in claiming the annual cash rebate.”
“There would be a ripple effect as a result of this. The increase in the price of fuel would push transportation costs for businesses. This means, a lot of household products would become more expensive.”
“Will the government invest more money into public transportation system as a result of this?”
The problem with our country is, our costs of living keep climbing up but not with a faster pace than the climb in wages. As a result, our standard of living will fall. This might not be apparent now, but it will be in the future because this is where we are heading right now.
Increase in costs of living is good. But only if it is being followed by at least the same increase in wages. Because then, our standard of living will also increase. If things continue the way they are now, I’m afraid we would have to brace ourselves for the prospect of hyperinflation in the near future. So help us God!
SOURCE: paultan.org
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