Fuel price increase yet again

Pic 1: The ER34 at a petrol kiosk on the day before the fuel price hike

The Malaysian fuel (gasoline) price will be increased tomorrow on the 5th June 2008. Yet again! Yes, we Malaysians has seen the steady increase of fuel prices over the last decade. So uhmmm......it's nothing new nor it is not surprising to most if not all Malaysians.

Here is the history of the fuel hike over the years:-

Before 1990- RM 0.89/litre
year 1990 - RM 1.10/litre (increased RM 0.21)
01/10/2000 - RM 1.20/litre (increased RM 0.10)
20/10/2001 - RM 1.30/litre (increased RM 0.10)
01/05/2002 - RM 1.32/litre (increased RM 0.02)
31/10/2002 - RM 1.33/litre (increased RM 0.01)
01/03/2003 - RM 1.35/litre (increased RM 0.02)
01/05/2004 - RM 1.37/litre (increased RM 0.02)
01/10/2004 - RM 1.42/litre (increased RM 0.05)
05/05/2005 - RM 1.52/litre (increased RM 0.10)
31/07/2005 - RM 1.62/litre (increased RM 0.10)
28/02/2006 - RM 1.92/litre (increased RM 0.30)
05/06/2008 - RM 2.70/litre (increased RM 0.78)

As you can see, this time round, it's a MAJOR increase, the highest increase ever (for now). Word has it that it may even reach RM 4.00 a litre sometime in August this year. That is madness. The government always stresses that Malaysia still has one of the cheapest fuel in the region. Yes that is true but those countries are not petroleum producing nations. Have they ever compared fuel prices with countries that have petroleum production like Malaysia? For example, fuel prices in the below countries are:-

If fuel prices are increased but there are other alternatives like public transportations, then there is a cheaper avenue out; but public transportation in Malaysia is not convenient nor planned properly. A car/motorcycle here is a necessity item. The car population is an amazing 500,000 vehicles every year (out of a population of 27 Million)!

At the moment us Malaysians are worried about the domino effect this will entail. Cost of transportation will go out, prices of food will increase, electricity tariffs will go up, and basically everything else will be costlier. If only our pay are increased proportionately. :P

To help offset the increase in fuel prices, the government introduced a cash rebate of RM 625 per year will be given to owners of private cars with an engine capacity of up to 2000 cc and pick-up trucks/4WDs/SUVs of up to 2500 cc. For vehicles over 2500 cc, there will be a reduction in roadtax of RM 200 and for motorcycles up to 250 cc, a rebate of RM 150 annually.

As for the ER34? Every 50 litres I pump in now is an additional RM39.00.

Sigh......

Pic 1: The ER34 looks at the rush to fill up before the fuel price hike tomorrow