It will be 78 sens; 40% increase in the price of petrol and RM1.00 increase for the price of diesel which will now cost RM2.58.
Any way, we Malaysians have a consolation; Prime Minister Abdullah says we are still the cheapest in Asia.
I met Mrs. Ah Soh just now and she told me the price of rice which costs her RM22.50 per 5kg will now cost RM45.00 per 5kg which is a 100% increase.
It is observed that essential food will/have increase 100%.
I asked Ah Beng, the supervisor of a massage parlour, how about the business cost and pricing for a massage and he told me that he expected the price to increase by about 30-40% in tandem with the rise of fuel cost. "But, massage don't use petrol or diesel," I quipped. Ah Beng: "You also stupid! The massager comes to work by car or taxi and their cost to work has increase and soon they will be asking for a pay rise or else they will mogok." I see!
Another consolation is that my Ah Loong friend just told me that he is going to reduce the borrowing rates from 10% to 8% as a social responsibility to assist the people and bumis will get extra 1% discount.
What will be the repercussions? Transportation cost & school buses - what will be the increase?
What about the chain effect on all other businesses and what is the total impact on the people?
Will this be a trigger of calamities? I darn dare to think about it.
What will be the repercussions? Transportation cost & school buses - what will be the increase?
What about the chain effect on all other businesses and what is the total impact on the people?
Will this be a trigger of calamities? I darn dare to think about it.
34 comments:
I thk we are so blessed. There won't be increase in toll. :P
Public transportations still suck. What is the option now? Where is the bikes that no need fuel 1?!! haha
Hasilox,
The bike is on sale at Proton.
The one thing that remains the same is the fact that we are always the cheapest in Asia!
"and bumis will get extra 1% discount"
LoL!
What to do, public transport also sucks. Im buying a new bicycle tmrw and cycle my way to office (12km).
Majority of Malaysian never learned their lesson. They vote BN so they got Barang Naik. So, what to complain? I have the right to complain cos I never vote for Barang Naik. But it still naik!!
Just now, I was on my way back from my office, and to my surprise, all petrol stations were having a very long Q, I guess more than 2km long. So pathetic. How much can they save for queuing that long? For my case, I'm spending roughly RM60/week and this translate the usage of 31.25liter/week. From tomorrow onwards, I'm expecting to spend roughly RM85/week. Imagine if I was one of those guys who are willing to Q for more than 2 hours just to save RM25. Yes, RM25 and not RM25/week. Unless I can buy all the petrol for my ext 2 years usage, then that will be another story.
Btw mave, maybe u should do some research and write something in ur blog. I'm trying to understand how actually this petrol subsidy thing works.
I'm not an economist but based on my logic, I dont see why any need to increase the petrol price because we are an oil exporter country and my understanding is our crude oil quality in among the best the world. Which mean we are selling our oil much higher than the normal crude oil which we are importing for our own usage.
Ok, lets just do a very simple mathematic. Let just say we are exporting 1000 barrels/day and our normal usage is 700 barrels/day. Let say the price for petrol in 2005 was USD50/barrel (normal crude oil/ and USD52/barrel for our oil. And let say now the price is USD135 and USD137/liter for normal crude and our oil respectively. In 2005, the cost for importing a 700barrels of crude oil was USD35k, while at the same time making a total revenue of USD52k and this will generate a profit of USD17k. Lets look what is happening in 2008. Cost for importing normal crude oil will be USD94.5k and at the same time Msia is generating a total revenue of USD137k. That is USD42.5k profit. How come our govt can say that this oil increase had put extra burden to them??? I just dont understand.
And one more thing, I'm working directly in an oil&gas industry in one of the biggest oil company in Msia, and for the past 2 years, my salary increment is not much increase! Where is the logic that cost of producing oil increase!! I hope, by tomorrow, my employer will declare a 40% increase in our salary...then I can see a logic in there.
this is the other side of subsidy mentality. the ugly side. the people / economy has been sheltered from the rising prices / inflation and when the crunch comes, it becomes to great to endure in one fell swoop.
same goes for preferential treatment for companies, political parties,.... get the hint?
btw there been calls to make Petronas answerable to the Parliament - where's all that money and where is it going to? Any updates on this?
too great to endure...
Why Malaysian govt always like to compare our oil price with Spore, Thailand & Philipine? Why not with Brunei?
Let just compare with Spore.
Say average msian salary is RM3000 and their spending for petrol per month is 150liter x RM2.70 = RM405/mth which is roughly about 13.50% of our salary.
Using the same number, say sporean salary is SGD3000 and their spending for petrol is 150liter too (I dont think they're going to spend that much in that small island maybe less than 100liter). Then, their usage will be 150liter x SGD2.26 (RM5.02 as Msian govt always like to use this number to show how high is the price of petrol in spore just to justify their action) = SGD339/mth. That is about 11.30% of their average income. Can u see the different.
Are we comparing "apple to apple" or "apple to banana"???
Semua orang Malaysia sudah kena tipu wooooooooooooooo!!!!
One thing remains the same. My Salary...
Hopeful,
Ya, one thing remains the same - the same excuse.
Noktahhitam,
Ya, Bicycle is the answer.
Barang Suka Naik,
The subsidy thing and its details are all bullshit; it is like looking at school fees and based on that school fees to pronounce the cost without considering the costs of tuition, school bus fares, books and stationaries.
Petronas stands to gain extra over of RM80b and this did not include the overseas oil revenue. The govt stands to gain 28% tax and 5% royalties from Petronas and there's also the yearly dividends which amounts to $20-$30b. Apart from this, there is also the downstream products which are also extra profits as a result of the high crude prices.
If we take into considerations of all the benefits and extra profits and taxes and dividends from the high crude prices, it will offset all the subsidies.
The truth is, the truth must be hidden.
Jefus,
Even if Petronas is answerable to Parliament, nothing good will be derived; believe me.
Barang Naik Lagi,
Malaysian govt only like to compare with those who are worse off than us; not with those who are better. When comparing educational excellence, Malaysia would use Singapore as benchmark. When comparing car prices, Malaysia won't use Thailand as a benchmark. When comparing corruption, Malaysia can only use Zimbabwe as a benchmark.
my hub case - 300++ liter/month! say 300x2.70 = RM810. surely die! cut us to the bone! salary don't ask la... sakittt!!
Abdullah says: Tighten your belt;
Najib says: Change your lifestyle;
Mahathir says: Blame Abdullah;
I say : Fuck you all.
not to forget.. electric tariff will rise too. begin in july.. suggestion - use candle at nite. baru romantik sikit!
and the govt can afford to spend RM500 million a year in a National Suicide program so that some young malaysians will come out in body bags.
Or RM4.7 billion down the drain for a white elephant in Port Klang. Beauty is that the promoters are promoted to be BBC Deputy. And chairman is now deputy minister.
Or spend another US$65 million to buy a used capsule.
Great, now they are telling you tigyten your belts coz the govt cannot afford any more subsidies.
WTF
Suealeen,
Najib says Adjust Spending!
Pak Lah says Change Lifestyle!
Mustapa says, Eat Less Rice!
Shaziman says, Use Less Electricity!
Samy says, Makkal elek Sakthi!
The People, can't say; ISA!
Yok Hoong,
The govt still thinks they are doing good for the people; Pak Lah says, petrol price is still the cheapest in Asia; electricity tariff is cheapest in Asia.
They didn't say, salary is also one of the lowest in Asia.
Mav...
allow me some space to let off steam..and if this post is vulgar and not appropriate with my anger on the fuel price increases.. please delete.
AAB and the BN govt..FCUK YOU..Bastards
We are still the cheapest...people in Asia!!!!
What is going to happen to all the lower income people???
Artchan,
Arthur Schopenhauer says, "Rudeness is a quality which, in point of honor, is a substitute for any other and outweighs them all."
I think you need to let go your heat within and you have restricted yourself within a limit. You are ok.
Gongkaukau,
All the lower income people will suffer; suffer drastically and calamities will follow.
Ya the lower income people which are the major portion of the populations in Malaysia will definitely suffers.
There was a blogger who say everything hike but our wages take a hike!
There are so many wastage and leakage in our country and always the people are make to suffered!
I believe the treasury coffer is really dry now ;otherwise Abdullah will not risk to have his popularity being weakened further by this highly unpopular and excessive increase in fuel price while Mahathirs & Gang are demanding his blood.
I wept for the poor and the have-nots in the country.
May I quote from the following site: http://humblevoice.blogspot.com/2008/06/56-billion-ringgit-question.html
Malaysia is a net exporter of crude oil. So the government did NOT subsidize our petrol. The RM56 billion ‘subsidy’ per year is the extra amount that the government would have earned if it had exported all of our oil production. There is no 'spiralling bill', the government did not lose any money because it is our own oil and we are not paying anybody for our oil supply.
When the government scrapes the so called ‘subsidy’ that it did not pay any money for in the first place – it is forcing the rakyat to buy back our own resources at a much higher price. Each and every one of us will suffer because of this, especially the poor.
The hike in oil prices has not caused hardships to our government. On the contrary it has already earned record profits for Petronas. And now our government is going to squeeze even more profits by squeezing the rakyat.
Read the posting by Jeff Ooi here. Why is the media not highlighting this!!!!!!
These IPPs pocketted 50% of the entire fuel subsidy!!!!!
http://www.jeffooi.com/2008/06/removing_fuel_subsidies.php
WTF are these IPPs to screw us big big???!!!!!! These IPPs pocketted 50% of the entire fuel subsidy!!!!!
"...Why spare the IPPs?
If the Abdullah Administration thought it right in removing fuel subsidies meant for the business and individual consumers, then it should do the same to remove indirect but guaranteed subsidies to the Independent Power Producers (IPPs).
Under the lopsided terms of the Power Production Agreements (PPAs), the IPPs are shielded from the rising cost of fuel.
The five first generation IPPs all use natural gas as their feedstock and PETRONAS sells gas to the IPPs at RM6.40 per million British Thermal Units (mmBTU).
That pales in comparison with the current market price of around RM35/mmBTU.
PETRONAS has paid out RM58.2 billion in gas subsidies since 1997, out of which, RM26.7 billion has gone into the pockets of the IPPs....."
Why to electricity sector (ie, for those IPP) the price is RM14.31 per mmBtu.
And for the industrial sector is RM32.56 per mmBtu.
Why continue to subsidise the IPP where the media and goverment trumpet economist is saying withdrawl of susbsidy is a good thing.
Why the double standard!!!!
http://www.bernama.com/bernama/v3/news_lite.php?id=337301
Abdullah also announced that beginning July 1 2008, the prices of gas supplied by Petronas in Peninsular Malaysia will be changed as follows:
* For the electricity sector, the price will be increased from RM6.40 per mmBtu (Million British Thermal Units) to RM14.31 per mmBtu.
* For industrial sector consumers using less than 2 mmscfd (Million Standard Cubic Feet per Day), the price fixed by Gas Malaysia Sdn Bhd (GMSB) will be raised from RM9.40 per mmBtu to RM24.54 per mmBtu.
* For industrial sector consumers using more than 2 mmscfd, the price of gas supplied by Petronas will be raised from RM11.32 per mmBtu to RM32.56 per mmBtu.
Subsidies should go for other important things that the whole lot of the people can benefit from. Not everyone will benefit from fuel subsidies (not all malaysians own a car?) but if spent on things like food, rice, water, education? Then everyone can have a taste these subsidies not just a select few.
totally agree with daniel. although the fuel price has increased we still get the benefit from other things
mav, aiyah..everything naik. just now one of the crane owner submit to revise the charges & ask me to consider! that's not the end, i believe. more will follow.Am i suppose to be considerate or the gov't, mav?- Mmudahlupa
CK,
What you say is true. The lower income group will face all sorts of problems once the chain effect takes place.
Fair,
You are probably correct; and I think PM had no choice.
Niamah,
We could be complicating matters; IPP had a contract with the govt on the agreed tariff and if the tariff is adjusted higher the IPP concessionaires will have a right to increase the price; what it means is, there is a price fluctuation clause; and it is a non issue here. The issue is only: why did the govt agreed a lop-sided agreement? This, I can't answer.
Niamah2,
IPP agreement is such; it is not discrimination; it is an agreement. The question of the lop-sidedness should be address by the govt but has nothing to do with the price itself.
Daniel,
You may be right; but the crux of the issue is not subsidy; it's the benefit derived from high crude oil price which is not benefiting the rakyat.
Anonemo,
What things did the rakyat get to benefit from the fuel price increase? Please enlighten!
doc i just quit wor...now petrol price increase...how to survive lah? have to sit home everyday is it??? sigh.....
Shopaholicfern,
You quit? Jobless? Don't go out shopping; don't eat, sleep only.
Sleep - no need for food, petrol.
What will happen if the price of everything continue to increase? Oh dear... this is worst than dooms day. We all die slowly.
PM had a lot of explanation to do like what Dr M did during the economic crisis. What goes up must come down.. maybe!- mmudahlupa
Purple~Mushroom,
Everything is going up in tandem. We won't die bcoz we had stupid govt.
Mmudahlupa,
PM already explained! He said Ubah Gaya Hidup!
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