Following the increment of petrol and diesel prices, w.e.f. 5th of June, rise of goods and services can also be speculated both in the short and long-run. If you haven't read or been told about it, the price of unleaded petrol has been increased by almost 41% from RM 1.92 per litre to RM 2.70 per litre, whereas diesel sees an increase of RM1.00 from RM1.58 to RM 2.58 (which is about 63%). Consequently, the real income of labors will drop, unless salaries are raised in order to subsidy the burden of the change in petrol price. However, following the announcement, owners of vehicles not more than 2000 cc will be given a subsidy of RM 625 in cash annually when vehicle owners renews their road taxes. But, the ultimate question would be is RM 625 enough?
For a car of 1600cc, a full tank would cost almost RM 70.00 before the rise of petrol price. Considering a 41% extra that one have to pay now, it is equivalent to RM28. Assuming that the average days for a petrol refill is a week, the extra money to fork out would approximately be RM 28*52 weeks = RM 1456.00. RM 625 is less than half of that. With that, will people actually care and reduce their car usage? Or will they car pool? Car pooling is hardly a practice in M'sia, and travelling with cars are truly necessary. Just look at the amount of cars on busy highways (Puchong - KESAS, Federal, MRR2, Sungai Besi, etc) everyday. The only realistic alternative or drivers will be reducing their expenditures on other stuffs. Not forgetting those who drives vehicles above 2000cc, the only subsidy given is a deduction of RM 200 in the road tax. This new effort is to close the gap between the rich and the poor, and its clearly reflected in the structure of the new subsidy plan.
Despite having a hard time dealing with the rise of the petrol prices, households will also face the fear of a hike in their electricity bills. Electricity rates will actually rise by a minimum of 18%. If usage of electricity is more than 200kWh per month, the marginal increase will be even higher, I suppose. This will definitely drive my mom a headache. Usage of electricity in my house is pretty high, and last month's bill was about RM 600.00, an all-time high. I wonder what will the next bill total up to... Would it be close to RM 800.00? It's scary how much electricity my house consumes, but it's all necessary when you have 7 people living under one roof.
For a car of 1600cc, a full tank would cost almost RM 70.00 before the rise of petrol price. Considering a 41% extra that one have to pay now, it is equivalent to RM28. Assuming that the average days for a petrol refill is a week, the extra money to fork out would approximately be RM 28*52 weeks = RM 1456.00. RM 625 is less than half of that. With that, will people actually care and reduce their car usage? Or will they car pool? Car pooling is hardly a practice in M'sia, and travelling with cars are truly necessary. Just look at the amount of cars on busy highways (Puchong - KESAS, Federal, MRR2, Sungai Besi, etc) everyday. The only realistic alternative or drivers will be reducing their expenditures on other stuffs. Not forgetting those who drives vehicles above 2000cc, the only subsidy given is a deduction of RM 200 in the road tax. This new effort is to close the gap between the rich and the poor, and its clearly reflected in the structure of the new subsidy plan.
Despite having a hard time dealing with the rise of the petrol prices, households will also face the fear of a hike in their electricity bills. Electricity rates will actually rise by a minimum of 18%. If usage of electricity is more than 200kWh per month, the marginal increase will be even higher, I suppose. This will definitely drive my mom a headache. Usage of electricity in my house is pretty high, and last month's bill was about RM 600.00, an all-time high. I wonder what will the next bill total up to... Would it be close to RM 800.00? It's scary how much electricity my house consumes, but it's all necessary when you have 7 people living under one roof.
Eventually, the economy will actually suffer for a while before all adjustments completes. Till then, spend only when necessary. And always remember the slogan "Fikirlah dahulu... pastikan mutu... beli yang perlu!".
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