I have a suggestion: quit smoking.
I suspect that if you stop smoking, your may be able to maintain your expenditure to pre-June 5 level.
As for me, while I have some reservation at how the prices were raised, I cannot wait for August 2008 when local fuel retail prices are expected to achieve parity with world prices. Please raise your glass to a good economic policy.
p/s — this entry is meant for Malaysian audience. As pointed out in the comment section, this idea does not apply in other places.
3 replies on “[1676] Of are you bitching about higher fuel prices?”
Dear Mudasir,
oh no, I’m referring to those in Malaysia.
Cigarette prices in Malaysia is about RM8.00 or IIRC, a minimum of RM5.00 (see this 2007 list). Let’s take the cheaper price. With RM0.70 increase in retail fuel prices, RM5.00 is equivalent to 7 liters of subsidized fuel at pre-June prices. That assumes a consumption of one box per day. What if two boxes are consumed instead which is not uncommon?
That would mean having close to 14 liters of fuel at pre-June subsidized prices in one day.
Imagine 2 boxes over 7 days. 98 liters per week at pre-June prices! That is more than what a full tank of a lot of cars could handle in one fill!
Therefore, I think cutting down on cigarette consumption in Malaysia makes sense if one cannot afford to pay the new fuel prices. But of course, they are other means to cut expenditure if fuel consumption cannot be reduced.
dear moo_T,
Not that I’m defending the NEP but fuel subsidy does not fall under the NEP.
I’m not sure what made you think quit smoking is gonna help maintain expenditure. Over here a pack of cigarettes in virginia is cheaper than a gallon of Milk or Gas.
PPP experts are gonna have to reshuffle that basket this year.
And yes, I will drink to this. It has been a wasteful 2 decades of subsidizing. Talking about crutches.
So my question is, Do petrol wholesalers pay a flat tax based on quantity or a percentage based on $ in Malaysia?
Maybe this move might actually work even better for the governments coffer.
I will not raise the glass if NEP still holding ground.