The price of petrol….

As at today, petrol price will cost you 0.78sen per litre more – which means I have to fork out additional RM20+ for a full tank of unleaded petrol and the increase comes as shock for me.

The repercussion of the price hike is going to be felt very soon in the coming months. Inevitably prices of food, services, transportation – almost everything will go up. Electricity rates will go up by 18%. Water ? not sure yet but I reckon it will go up to.

As you can all see, we are quite dependent on fossil fuel. It’s what drives the economy of the world. Without it, will be caught with our pants down. We’ll be in chaos. Everything will grind to a halt. Sounds scary eh ? 😦

As for me, I have to tighten my belt and spend only on things which my family needs and not wants. I guess I have to drive economically as well…something which I am not to fond of doing. 😉

http://www.nst.com.my/Current_News/NST/Thursday/Frontpage/20080605082202/Article/index_html

PUTRAJAYA: The pump price for petrol is now RM2.70 per litre and diesel RM2.58 a litre following a cut in the fuel subsidy.

The increase of 78 sen per litre for petrol and RM1 a litre for diesel still leaves their prices 30 sen below the market rate.

Announcing the hike, Prime Minister Datuk Seri Abdullah Ahmad Badawi said a 30-sen subsidy per litre will prevail on pump prices, and will be used as an “automatic adjuster” in tandem with fluctuations in the world oil price.

The government will make the adjustments monthly.

To cushion the price increase, cash rebates will be given to owners of cars and motorcycles, based on engine capacity, through post offices from July 1.

These rebates will be given to owners of vehicles with road tax renewed between April 1 this year and March 31 next year.

Those who have already paid their road tax should produce their vehicle registration details at a post office and Pos Malaysia will issue them a money order.

Vehicles with large engine capacities will be levied a lower road tax from June 1.

The rebates will cost the government about RM5 million this year.

From today, the price of subsidised diesel will be standardised at RM1.43 per litre for fishermen, boat owners and transport operators.

Previously, subsidised diesel was priced at RM1 per litre for fishermen, RM1.20 for boat owners and RM1.43 for transport operators.

Prices for cooking gas (liquefied petroleum gas or LPG) and natural gas for vehicles (NGV) remain unchanged at RM1.75 for every kg of LPG and 63.5 sen for every litre of NGV.

This involves Petronas restructuring its gas subsidy from July 1 for the peninsula whereby it will raise gas prices for energy producers and industrial users.

The government will save RM13.7 billion from the restructured package.

Out of this amount, RM7.5 billion will go towards subsidising prices of petrol, diesel and gas.

The rest will be spent on food security (RM4 billion), cooking oil subsidies (RM1.5 billion), standardising the price of rice in Sabah and Sarawak (RM0.4 billion), flour subsidies (RM0.2 billion) and bread subsidies (RM0.1 billion).

Abdullah said even after the fuel price increase and restructuring, the government would still have to spend about RM18 billion to pay for the difference between the pump prices and the world price.

Reiterating his call for Malaysians to change their lifestyle and be more prudent, Abdullah said they should try to spend less in all areas.

“This is something that is happening all over the world. We are not lifting the subsidies totally as we are still subsidising petrol and other items like cooking oil.”

He said efforts were being made to improve the public transport system.

Acknowledging that the fuel price increase would not go down well with the public, Abdullah said the government could no longer sustain the rising price of oil.

“I am not out to be popular. We try our best, and this is something we are very serious about, but naturally people will not be happy.”

Fuel subsidy scheme

– 30 sen subsidy for petrol and diesel

– Automatic monthly adjustment in petrol and diesel prices, in line with global prices

– Annual cash rebate of RM625 for owners of private vehicles with an engine capacity of up to 2,000cc, and pick-up trucks and jeeps up to 2,500cc

– Annual cash rebate of RM150 for owners of motorcycles with a 250cc engine or less

– Road tax discount of RM200 for owners of private vehicles with engine capacities above 2,000cc

– RM50 road tax discount for motorcycles with engines above 250cc

– Fishermen, boat owners and transport operators will get diesel at RM1.43 per litre

– Each Malaysian fishing vessel owner will receive RM200 monthly

– Fishing vessel owners will get incentive of 10 sen for every kilogramme of catch landed

Where the RM13.7b savings will go

– RM7.5 billion goes back as subsidies for petrol, diesel and gas

– RM4 billion for food security

– RM1.5 billion for cooking oil subsidies

– RM400 million for standardising price of rice in Sabah and Sarawak

– RM200 million for flour subsidy

– RM100 million for bread subsidy

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3 thoughts on “The price of petrol….

  1. prakash says:

    Government has to cut down taxes on petrol to controol inflation.

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