Essential Motoring 101

I just watched the news on TV and was shocked to know that the Malaysian government will reduce fuel subsidies considering the fact that global oil prices have reached a high of USD96.37 a barrel (Source: NYMEX) There will be a RM0.40/litre increase on the current RM1.92/litre to the new rate of RM2.32/litre come 2008. The rate of increase is not confirmed as it is merely speculation based on the news on TV.

Like it or not, the fact will still come and it’s going to hit hard on those lower income group in Malaysia. According to public opinion, also from the news, that subsidies should be granted to those who rides a bike to commute and to those who are low wage earners. “We should not be suffering like this but how about the rich people? They are not greatly affected by the price increase, unlike us in the lower income group!” ranted a furious motorist in an interview by the TV station. Well, he is right but how does the government act on this?

Now with inflation on the rise, there will be very prudent consumer spending to be expected in 2008. The increase of fuel prices will directly affect the price increase of essential goods as food stuff are transported by any modes of transportation that burns oil to operate. Roti canai now costs RM0.90 a piece. A ‘leong cha’ (Chinese herbal drink) now cost RM1.40, from RM0.80 - RM1.00 previously. But come to think of it, buying groceries from a market and cook it at home would cost even more! Dont forget that we didn’t factor in the amount of water, electricity and time to prepare the food - it would cost more than eating out!

This phenomenon of rising prices in the coming future is a natural behaviour for a country to progress but in this country we call Malaysia, the man on the street with a family of 4 to feed will not have enough to spare even for savings for future. The average income earner do not bring enough disposable income back to the house to afford even the most basic necessities like food. Like the usual complaints of the people, ‘prices increase but not our salaries!’ I couldn’t agree any more on that statement!

Maybe we have to start selling off our petrol-hungry cars and get a hybrid fuel car like the Honda Civic Hybrid, but then, its too pricey at RM188,000 to afford one. Electric cars are not accesible to the public as of now. Riding a bicycle to work/play is never an option in our tropical country as well. So, what do you recommend?

How do we sustain in such an ‘expensive’ environment??