Petrol now going for RM 2.70 per litre

KUALA LUMPUR: Prime Minister Datuk Seri Abdullah Ahmad Badawi on Wednesday announced price hikes for petrol, diesel and electricity.

He said the new price for petrol is RM2.70 a litre, effective midnight tonight. The price goes up by 78sen from the current RM1.92, a hike of 40%.

Abdullah also announced a RM625 annual cash rebate per vehicle, for owners of private vehicles with engine capacities of up to 2,000cc, as well as pickup trucks and jeeps with engine capacities of up to 2,500cc.

Owners of private motorcycles with engine capacities of up to 250cc will receive RM150.

Payment will be made via Money Order upon renewal of road tax, from July 1.

Full article here.

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In fact, I don’t think this would even be of any “new” news to anyone. Everyone has had their eyes set on waiting for the statement from the PM’s Office.

I have to say that I was expecting that they would do away with the subsidy, but I guess they didn’t have to guts to go through that.

It has been widely speculated for the past few days that petrol prices could hit RM4 when the government decides that they are no longer going to provide subsidised fuel. Now that they are still susidising, although with a price increase of 78 cents, there would be sighs of relief that they still don’t have to pay the full retail price.

It could have been one of their tactics to control consumer anger on the price hike. It seems that it’s working out quite ok.

Perhaps they can set a timeframe to gauge the scenario, and see how the cash rebates work out. From there, or rather from here on, efforts must be made so that the people can pay full retail price for petrol consumption. Any form of subsidy or rebate should make its way to those who need it more, meaning the low-income group.

With higher fuel prices, perhaps society can start to look at ways to save on petrol consumption, and at alternative transport systems. And together with the hike in fuel prices, even electricity bills are going to be higher. So the people will have to find ways on how to be energy efficient.

The fact that they have decided to still maintain some of the subsidy, and have rebates for a certain threshold of vehicles is a good start. But they must not have any illusion that this spells the end of the fuel crisis.

This is far from over. Prices will continue to go up. It is up to what the govt decides to do next that determines whether this is at all going to succeed.


2 Comments on “Petrol now going for RM 2.70 per litre”

  1. Loy says:

    I’m Canadian, but have lived in Malaysia between 2003-2007. I just wanted to comment on your tidbit about electricity prices rising. That would make it unbelievably expensive! Malaysia is already SO expensive for electricity its not even funny. The US and Canada electric charges are but a mere fraction of the Malaysian prices. Ex. I’ve got a 2700 sq. ft. home, centrally air conditioned (AC on all the time in the summer), three fridges (each bigger than the Malaysian ones), two ranges, three microwaves, two plasma tvs, an lcd tv and five computers… and my bill is about $120/mo. In Malaysia, one AC running 18 hrs/day, no other appliances would cost me $400 cdn/mo!!!
    ______________
    Yea, electricity in Malaysia is expensive already as it is. This to me was one of the more not-so-good decisions the govt made. In NZ, I think we pay in three months what we would normally pay for the monthly bill in Malaysia. Meaning it’s about 3x as expensive.

  2. Wong Chin Liang says:

    Dear Sir,

    I really like your blog. Informative, simple and clean

    Could you please help tell me what types of fonts you are using for the site and what size?

    Thank you.

    Yours sincerely,
    Wong
    ___________
    Correction: Miss, not Sir.🙂
    I actually don’t choose the font and size myself. It’s all in the template. Sorry, can’t help you here.


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