Yesterday's announcement caught many by surprise, to say the least. Many expected a price hike, but didn't expect the 40.6% increase for petroleum and 63.3% increase for diesel. For the past couple of months, I have been talking to friends working in Petronas, and they told me that the price hike for petroleum and diesel is inevitable. The questions then were when and by how much. And the answers were revealed yesterday. That's reality for you.How do I look at it? I agree that the price increase is unavoidable. And to continue with the subsidy would be economically-suicidal in the long term. As it is, with the current pricing, the government is still subsidising RM0.30 per litre.
No doubt, most of us will find this increase causing a major dent in the wallet. We are talking about a 40% increase. So, if you spent RM500 a month on petrol before, that means you'll be spending RM700 now. And that's just for petrol. Just imagine if this increase is translated into escalating costs on other things. Things like foodstuff, public transport, electricity tariffs, as well as other goods and services. That would surely spell more financial trouble for most of us.
Most definitely, everyone will have to do a lot of adjusting in the way we spend and manage our finances. We have no choice but to spend prudently and prioritise on our spendings. Of course, this is easier said than done.
As for me? Coincidentally, for the past few weeks, I have been talking about selling my car. And interestingly, I already have a buyer. The potential buyer owns a Volvo that is petrol-consuming, and he travels from Kulim to Penang everyday. With the jam on the Penang Bridge, just imagine how much he will have to spend on petrol alone. So, switching to a Proton Wira 1300cc is perhaps a wise option for him.
So, I'll be selling the "old faithful" which I have owned for nearly eight years. [Eight years this 20th June actually]. And since my office is only three minutes away, the logical choice for me is to walk.
It'd do my wallet a whole lot of good.
And my tummy, too.
2 comments:
Malaysians are just starting to see a price hike in petrol? The US saw the hike 6 months ago. We're now paying US$4.10 per gallon of petrol in New York and that's for the regular non-premium type. I dread going to the pump these days. In the mean time, my husband stil insists on feeding his Acura with premium unleaded petrol!!
The price hike in Malaysia may be a little later than some parts of the world. But still, I can already see many people feeling the pinch. Someone even said that there seems to be less cars on the road this past couple of days. It'll be a while before we can gauge the true impact, but the biggest price hike in Malaysian history will surely affect the majority of the people.
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