More Rants About Fuel Prices.
Should the fuel prices in Malaysia be increased? I would say it has to at some point and increasing it now is better than later right? Well, depends on where you stand, there is a big chance that you might not agree with me. First of all, the oil subsidies already costing the government up to RM53 billion annually, which is a huge amount of money. Secondly, other countries have already beginning to tax fuel when our country is still continuing to subsidise fuel. And third, letting the fuel prices to float at market level might actually allow us to use cheap fuel when the oil price goes down (if it goes down, that is).
So, what is wrong with this increase?
Firstly, last year, the government announced that the civil servant got an increase in salary by 35% and at the same time, household prices increased by 20%. And now, the fuel prices increased between 40% and 63%, which basically means the previous increased in salary is now meaningless. Another thing, the civil servant got an increased in salary last year but the private sectors did not increase wages. Basically, what we have is almost stagnant growth in wages but an escalating cost of living. And that will bring down our standard of living because with our current income, we can no longer enjoy higher quality and varieties goods and services in the market.
Second, is that the increase in fuel prices is a little bit too abrupt for many Malaysians. At least, the government could have warned the people that the prices will be hiked at some point in the future before actually increasing them. What happened was that a certain minister said that the prices will be increased in August only to increase the price two days after that. Basically, Malaysians was caught off guard and the fact that the hike was done in the middle of the month made things worst. If say, the prices were increased near the end of the month, most people would get their monthly salary around that time and would be able to adjust their fuel consumption behaviour accordingly.
Third, by not making a hasty decision like now, the government would then be able to roll-out better subsidising policy and measures to help the people to cope with the increase costs of living. What the government did was banning foreign cars from buying fuel in Malaysia only to take a u-turn a week later. The government also announced that the new prices will actually fluctuate every month depending on the world oil prices but yesterday announced that the prices will be maintained until next year. The government announced a new cash-rebate system that will only be implemented for a year until they come up with a better way to subsidise those in needs. These are evidences of how hasty was the decision to increase fuel prices. It was as if, there were no studies regarding the matter and it seems to me that the government just flipped a coin to decide what to do next.
I know that I am rambling over here but we do live in a democratic country don’t we? Again, I am all for the increase because it has to happen – face the reality – but I am a little bit unhappy at the how the whole situation is being handled.
P.S. It should be interesting to note that in the UK, fuel consumption has decreased by 20% as a result of 15% increase in fuel prices over the past year. What do you think about that?
So, what is wrong with this increase?
Firstly, last year, the government announced that the civil servant got an increase in salary by 35% and at the same time, household prices increased by 20%. And now, the fuel prices increased between 40% and 63%, which basically means the previous increased in salary is now meaningless. Another thing, the civil servant got an increased in salary last year but the private sectors did not increase wages. Basically, what we have is almost stagnant growth in wages but an escalating cost of living. And that will bring down our standard of living because with our current income, we can no longer enjoy higher quality and varieties goods and services in the market.
Second, is that the increase in fuel prices is a little bit too abrupt for many Malaysians. At least, the government could have warned the people that the prices will be hiked at some point in the future before actually increasing them. What happened was that a certain minister said that the prices will be increased in August only to increase the price two days after that. Basically, Malaysians was caught off guard and the fact that the hike was done in the middle of the month made things worst. If say, the prices were increased near the end of the month, most people would get their monthly salary around that time and would be able to adjust their fuel consumption behaviour accordingly.
Third, by not making a hasty decision like now, the government would then be able to roll-out better subsidising policy and measures to help the people to cope with the increase costs of living. What the government did was banning foreign cars from buying fuel in Malaysia only to take a u-turn a week later. The government also announced that the new prices will actually fluctuate every month depending on the world oil prices but yesterday announced that the prices will be maintained until next year. The government announced a new cash-rebate system that will only be implemented for a year until they come up with a better way to subsidise those in needs. These are evidences of how hasty was the decision to increase fuel prices. It was as if, there were no studies regarding the matter and it seems to me that the government just flipped a coin to decide what to do next.
I know that I am rambling over here but we do live in a democratic country don’t we? Again, I am all for the increase because it has to happen – face the reality – but I am a little bit unhappy at the how the whole situation is being handled.
P.S. It should be interesting to note that in the UK, fuel consumption has decreased by 20% as a result of 15% increase in fuel prices over the past year. What do you think about that?
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