IMPACT OF THE FUEL PRICE INCREASE

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The fuel price had been increased to 4 cents this week. From 2.16 cent, last week to 2.20 this week for RON 95 the most commonly used fuel in our country. For the RON 97, the price also had been increased to 0.04 cent from RM2.44 per liter to RM2.48 per liter this year. The petrol price had been increased to just 4 cents but this will give a big impact for the folk’s wallet. Once upon a time, the oil price will be changed in according to the market rate hence it sometimes can take several years to have a change in the oil price, then it was determined to revise monthly before it was decided to be revised weekly and adding to it the oil subsidy to had been removed.

Before the introduction of RON 95, we are using just 2 type of fuel one is the RON 97 and another one is the diesel. They are some place whom will sell 3 type of fuel one is the RON 97, another is higher RON petrol and last the diesel. The highest price increase for the fuel is RM2.70 per liter during Prime Minister Abdullah Ahmad Badawi tenure. After Badawi had handed over the Prime Minister post to our current prime minister Datuk Najib Abdul Razak that saw several changes in the fuel mechanism in our country.

Under Prime Minister, Abdullah Ahmad Badawi saw the highest ever price increase for the fuel

First, Datuk Najib had introduced the RON 95, then the fuel subsidy had been removed, the price revision each month and now currently they revision of the fuel price weekly. The fuel price can increase to 0.70 cents like happen under Badawi regime or just 0.04 cent that happens currently but it gives a big impact to the folks in our country.

Our current Prime Minster Datuk Najib had made several changes for the fuel mechanism in our country

First, the increase in the fuel price will saw a chain reaction of the daily price increase. The increase in the fuel price will be used to increase the daily things price accordingly. Once upon a time, the price of a can of Coca Cola will cost 0.80 cents per can but now the price had been increased to RM2.00 per can. The price of the food and the things associated with it also saw an increase like in the old day the price of the Malaysian favorites dish nasi lemak is 0.80 but now the price is RM2.00 per packet. Even the household groceries too had increased dramatically and the reason for these is the increase in the fuel price. However, most folks feel annoyed when the fuel price decrease they will be no decrease in the price.

Second, the cost of the fuel will be increased too. For example, let’s say the fuel price is just RM 1.70 per litre than the cost of pumping fuel in a car that had a fuel tank capacity of 40 litres will be RM68 but with the increase of the fuel price let’s say to RM2.00 where it had been increased by 0.30 cent the cost now will be RM80.00. This increase will hit the folks budget. This increase is just only for the car that had a lower fuel tank capacity and it can hit even harder for the car that had higher fuel capacity like Toyota Camry, Honda Accord, Nissan Teana, BMW, Mercedez Benz, Jaguar, Audi, and much more.

Due to this reason combined, some will prefer to use the public transport to their preferred destination but unfortunately, not everyone is believing in the quality of our public transport. Not everyone is convenient to use the public transport. Let’s say someone staying in Selayang Baru and will like to use the public transport like LRT, he or she needs to drive the car to nearest Putra LRT in Taman Melati or Gombak station to take the LRT. The road in this area during peak hours had a notorious traffic conjunction and worst situation if the LRT had been broken down then the user will be late to their preferred destination especially for the work. Due to this reason, some car lovers will prefer to use their own transport.

The increase in the fuel price also led to the increase of the daily goodies price and it also will lead for some user to be tight on their spending. This although can be a good thing but for some whom had been hitten very hard by these will resort to other alternatives like involved in the crime or the worst situation gambling. For some, they may try to work part time by selling products, insurance, MLM scam, or much more. The reason of finding an alternative for their income is not due to fuel price increase but due to an increase of other things due to the fuel price.

These increase also will lead to increase of the price in the public transport too especially the bus. The fare for the bus now had been increased to the highest level possible as once the bus price is just 0.60 cent but not the bus price had been increased to RM2.50 or RM3.00. To soften the blow, the user can spend some RM150 to buy the RapidKl card but still the undeniable truth the bus price too had increased. Some express bus user meanwhile will use the reason to increase their fare too especially during the festival time.

The fuel price although will increase to just a couple of cent but the impact that it will give to the user is very high. The increase in the price due to this reason will make the price higher, making the folk to be on tight budget and increase the cost for pumping fuel in their car. Once upon a time, the price in our country is cheap and affordable but now due to several reasons and the fuel price is one of them, the price of other things too had been increased and worst we are getting small quantities for a higher price. The fuel price is directly or indirectly will change our lifestyle even for the one who is wealthy.

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