It was announced by the Malaysian Prime Minister a few hours ago that prices for petrol and diesel in Malaysia will increase by RM0.20.
After no price hike for many months, the Malaysian government finally decided to reduce fuel subsidy today. The announcement was considered last minutes because it was done less than 12 hours before the new price will take into effect.
Just around 4pm today, rumours about the price hike have started spreading on Facebook. The price increase will make RON95 petrol to RM2.10/litre and diesel to RM2.00/litre. RON97 petrol price is not affected.
According to the Prime Minister of Malaysia Datuk Seri Najib Tun Razak:
“The move is aimed at reducing the fiscal deficit, thus saving RM1.1bil per year for the Government”
It’s quite common for people to react strongly towards this kind of decision. Most people are going to their nearest petrol stations to fill up their tanks before midnight tonight. On my way home from Kuala Lumpur about an hour ago, the roads are unusually congested as most people were out on the roads to buy fuel (see photo above).
Considering the hike is RM0.20 per litre, how much does that affect the people? Quite a lot, I think. The calculation below was made by one of the administrators of a popular Malaysian Facebook page ‘Only in Malaysia.’
Katakan sebuah lori/kereta tangki minyak penuh 40litre dulu RM1.90 = RM76 untuk 3 hari, sekarang RM2.10 = RM84 , satu bulan pump 10 kali = RM760 , Sekarang 10 Kali = RM840
Translation: Assuming a car’s full tank can store 40 litres of fuel, at RM1.90 per litre a full tank would cost RM76 and can be used for up to 3 days. With the new price of RM2.10/litre, that will cost RM84 per full tank of fuel. In one month, one would spend RM840 instead of RM760 on the old price.
Price hike is something that we can’t control. So it’s really up to ourselves to find ways to increase or find additional income so that it will help offset any price hike in the future.
I bet there are already long queues at the stations now… Meanwhile, I’ll stay off the roads and let others join the queue.