Friday, August 05, 2005

MINYAK OH MINYAK...



With the recently increased fuel prices, more and more sectors have came out with a proposal of increasing their service charges as well as extra fuel surcharges. The only reason for the government to escalate the fuel prices was because the price for crude oil on the market is around USD$60 per barrel. The government does not bother to spend millions per year as grants or subsidies but instead prefer investing the money for greater goods. Still the government claimed our fuel prices is among the lowest in the Asian region.

In accordance with the facts, indeed our fuel prices is still quite low among the region, even after the third time (this year) the government decided not to retain the prices. In a merely five months we have seen the fuel prices from RM1.32 per liter to RM1.62 per liter for petrol and from less than RM0.80 to around RM1.28 per liter for diesel. I still remember the days when RM20 could get your tanks filled up with petrol around 15 liters. Go to the nearest petrol station and prepare to be suprised of how many liters can you get with RM20. Such a little amount of increases that make big big differences.

People said why won't the petronas use a portion of billions of profit they make each year as a contribution to the society, to assist or support as subsidies . Petronas have payed around RM246 billions of their revenues to the government in the form of taxes all these years. How much profit do you think they make each year and how much goes to the government? Certainly, Petronas uses their profit to invest in R&D, as well as advertisements and marketing and of course the Formula 1 series. These investments made by the petronas will generate incomes to them and indirectly to the government. By subsidizing the society, governments will lost millions and billions of income. Somehow petronas must think of their investors' interests which happens to be the first priority.

The fuel prices are not gonna stay for a while. Sooner or later it will gets higher, and as we are the beloved consumers can only nod our head and agree to it. What else can we do except moaning ourselves together. What I issued here is not how much the prices will be everytime there is an escalation, but does the government have to increase the prices a number of times in just a short amount of time? Everytime the fuel prices go up, people will ask for the same thing, extra fuel surcharge, more budgets and so on. Even nasi lemak prices goes up as well.