Fuel Price Increase: RM2.70 is the magic figure!

Gosh! Awesome! Unbelievable! I do not know what to say anymore. It is 41% increase to fuel price in Malaysia. Diesel price also increased by 64%. The aftermath is similar to “killer tsunami”. So the magic figure for fuel/petrol is RM2.70 per liter and RM2.58 per liter for Diesel.

The trade and consumer affairs minister, Shahrir Abdul Samad, said the government would also give a yearly cash rebate to owners of small and medium sized cars to offset their burden from the huge hike. Will this help Malaysians in the long run? Beats me I do not know.

Then the Prime Minister said that Tenaga Nasional Bhd would be raising electricity rates by 18% for homes and 26% for business users. The announcements are part of the new fuel subsidy plan.

Here is the news from the star online:

Earlier this week, the Prime Minister said that The government will scrap ceiling prices on petrol and diesel in August, and allow market forces to determine pump prices after incorporating a new subsidy system for lower-income groups.In theory, this means when world oil prices go down, it should be cheaper to fill up at the petrol stations. The current new price among the cheapest in the region.Given rising crude oil prices at the moment, however, most likely the average Malaysian will pay more for petrol and diesel, similar to consumers in Singapore and Thailand. In effect, pump prices could be more than double the current subsidized prices.More news about the price hike is here at http://thestar.com.my/

I think our Malaysian currency which is called Ringgit Malaysia will have a smaller value. Now with RM50 in your hand, what will you get when you go out for shopping or to groceries or to the gas station?

Are we going to change of lifestyle to save money. No more going to teh-tarik, no more shopping at the mall, no more extra money for holiday. When Najib (Deputy PM) said Malaysians should change their lifestyle, he meant to change your lifestyle for the worse 🙁

It seems that this country has a system to rip money off from her citizens and ask them to keep quiet and live with it. The fuel had almost double its price over the last 5 to 6 years and the salary had only raised like peanuts. I think it is time for Malaysian government to start a citizen's fairer waging system. With this scenario, the differences between the rich and the poor are stretching beyond control and the rich will always get richer ripping money off the middle and the poor. Don't you think so?

From the repercussion of that reduced spendings which is recommended above, the nation’s economy will only suffer. Inflation will eventually happen. Your RM50 can’t get you half of the same thing you could buy 5 or 6 years ago. Expect another economic recession resulting from this unexpected fuel hike is a thing to be known in the next 6 months or in the 2009 and beyond.

What should we do? . . . . Need your feedbacks and comments, guys. It is our future in this lovely country, Malaysia. Don't you think the price is ridiculous?