Wednesday, June 4, 2008

Petrol Hike Rumbles

It the midst of heavy downpour, lightning and flash floods at Lembah Pantai yesterday PakLa announced the new fuel price: Petrol RM 2.70 and Diesel RM 2.58 The population was shocked, not on the increase but the quantum , causing a mad rush on all petrol stations throughout the country right up to midnight. It was a crazy day and crazier night.

Today the sermons have started, all the Rakyat must be realistic and accept the new price and start living below their current means. Cut all the expenses and get ready for the snow ball effects on all prices of goods and services. The Kitchen Cabinet has decided what is best for the people, accept it, everything going to be all right. It’s beyond our control , we are dictated by the global oil price and God willing we will look at it on monthly basis because that how far we can see.

Mat Jenin was wondering under a coconut tree, what has happened to the wakil rakyat I voted in recently ? Are they working for the people or against the people, don’t this country belong to the people. Why did they keep saying it’s a subsidy when it’s our money in the first place. So whatever happened to billions of dollars the country benefited from the sudden increase of Malaysian premier crude? Whatever happened to the billions of dollars the country benefited from the increase of palm oil, rubber, taxes and other commodities. It looks like all the losses goes to the Rakyat and the profit goes to God knows who.

Forty percent increase of petrol price plus 6% inflation equal to reduce in purchasing power, equal to economic slow down, equal to down grading of economic rating to second class economy.

The Star :Petrol to cost RM2.70 from midnight
KUALA LUMPUR: Prime Minister Datuk Seri Abdullah Ahmad Badawi on Wednesday announced the new price for petrol is RM2.70 a litre, effective midnight tonight. He announced that the price of petrol would be increased by 78sen and diesel by RM1.

The 40% increase in petrol price is part of the new fuel subsidy plan the Prime Minister announced at 5pm Wednesday. The price of diesel goes up to RM2.58 from RM1.58.


cakapaje said...

Salam Dato',

Without wanting to sounds sarcastic, the extra profits Malaysia (not Petronas, as it is merely the mechanism set up to handle matters related to petroleum) earned, went to:
1. palalah's executive jet,
2. palalah's sail boat,
3. palalah's concert perdana
4. waste of money tourism shows and put ups,
5. mega wasting, mega spending, mega projects
6. extra costs for all projects which goes directly into the pockets of the Sarkas
...and who knows what else which none is directly and maybe only remotely beneficial to the rakyat!

My apologies Dato', I'm not a man of words for such things :)

jaflam said...

Thanks Shah, no apology needed. We cannot be singing " Si Luncai terjun dengan labu labunya .... biarkan ....biarkan " They can jumped into the river for all we care but don't bring our labu peram with him.

Anonymous said...

dear dato'

for 50 good years, the UMNO-led government has played santa claus. giving things to the people in the form of subsidies by utilizing public funds. it is certainly easier than working hard to elevate our incomes to a more comfortable level. Now the santa claus feels it is no longer bearable. Isn't the increase in the world crude oil would cause corresponding turnover and profit for petronas (whose money is used to pay the petrol and diesel susidies)? But they tell us the amount in term of ringgit and not in term of percentage. The ever growing figures look handy in providing the classical lies and excuses. I dont think the kitchen cabinet is capable of many things....too many choppers and knives there. They can cut us to pieces. Yet they are so blunt.

Kerp (Ph.D) said...

ok, i'm not gonna play a blame game since from what i understood the fuel crisis is a global problem. some may not agree with i'm about to say and that includes you, dato BUT, i believe if the grand old man (Tun) was still in the office he would have taken out his magic hat and get us out of this problem. or at least minimise the impact. he did that once 11 years ago didnt he?

we know yesterday's decision was made rather hastily and with all the feedbacks i read today, i'm sure there are many other options than to ridiculously hike up the price.

elviza said...

Dear Jaff,

I was about to answer your question then Shah did just fine there.

What went through his head yesterday? He just made a complete fool out of Shahir Samad who said the price increase would happen only in August.

You announced it at 5 pm (and the decision at 12 pm on the same day) on a rainy day in a city known for its notorious traffic jam.

Try putting yourself in that shoes FlipFlop. Would you like it? Of course, he said this in not a popularity move.

What freaking ever. The one who is paying more is always you and me.

jaflam said...

Salam Shirzad,
Thanks for the good past observations and current pakla dilemma. Unfortunately in today’s global challenging environment we need intelligent and brave heart leaders to steer us past the many downturns that going to come our way. The incompetence Captain can navigate in calm water but when the storms and close quarters situation arise his actions will sink the ship.

It is you, me and the Rakyat that build this nation and it’s not a mystery that proper subsidies works as double edge swords in balancing the macro and micro economy. There is no free ride in this country, what ever we get we give back in return although in different forms. The so called economic subsidies is a tool in managing costs, we are the productivity tools of the nations and we have every right to benefit from the overall revenues of the nation and not to be saddled with the losses while the elusive few rides away with the profit.

The rumblings have to go on until they stop the rubbish.

jaflam said...

Hello Kerp,
Actually I am going to agree with you on Tun. He wrote a good article on Oil Price and prudent ways to manage the situations at his site.

I have always admired his economic intelligence and his successful drive in taking Malaysia from second rated economy to respectable developing nation. He is capable of seeing the big picture and at the same time prescribes minor dosage or executes major surgery to heal the ill. Yes he will prescribe better solutions on this fuel hike any time.

jaflam said...

Hello Elviza,
It’s ok if you are not smart and making decision for yourself but when your decision affected every crucial aspect of people living, it’s just too much.

Maybe I can ride the impact of this stupidity but the average wage earners will be suffering to their bones when the inflations seep in.

It is a fact that PETRONAS is the bastion of nation’s economy and financial resilience. Its prudent business management, along with the rising oil price, has seen its profit after tax soared to more then RM 40 billions. PETRONAS money has been used to save many corporations and the nation in the past, I don't see why it could not be used to ease the burden of Rakyat. After all it’s the party that benefited from the global oil price hike

U.Lee said...

Hi Jaflam, I guess everyone terselak when having their dinner and hearing the news on TV. 40% is a big jump.
Disini, it creeps up one or two cents now and then, but...slight advantage, all the different gas stations compete with each other, so have to keep an eye which station cheaper.
Our gas price now is Cdn$1.26 or Rgt 4 a litre. Here too the PM, MP's kena goreng and bungkus daily, and to think Canada, next to Saudi Arabia has the second largest oil deposits, and we the biggest supplier of oil to US. which most Americans don't even know. Not even Hilary or Obama.
Really kesian the people...when the very basic necessities all need start heading upwards.
By the way, berapa a packet of nasi lemak now? My time lima puluh sen.
Jaf, maybe instead of bunga in your kebun, add some sayor? Kachang panjang, terong, chillies?
You keep well and jangan lupa water your plants, Lee.

jaflam said...

Hai Lee,
You are right some of them chocked their expensive rice that night. Actually the increase in oil price is nothing new and has been forecasted for years now. If the Government did their homework well there won't be 40% increase that caused panic and spiraling cost of all other items and services. I just came back from my weekly marketing, the chicken price increased 90 sen from last week and I have to pay 30 to 40% more for the same amount of goods. The nasi lemak is RM 1.50 sebungkus and you are right I am going to extend my herbal garden to vegetables and perhaps turned my planned water fountain to fish pond heheeee. Oh yes my plants will suffer too, I going to water them with 50% less water once every two days.

Canada is an interesting country and a melting pot, I like it better then US any time. Actually the real price of oil is not this high, the speculators and US policy has contributed very much on the current world misery. Soon the new oil and food crisis will invade the poor nations and leave them to the mercy of super powers headed by the US.

The world has no choice but to break free from this grand plan that going to destroy the value of living and harmony. You take care and have a great weekend Lee.

Zawi said...

D Jaff,
By raising the fuel price by at least 78 sen means the government has more than 8 billion to shunt around with. That is the source that they are going to use to payback the missing wang ehsan to Terengganu. Remember they cant tell the Trengganu people where the missing amount goes to? Yesterday the MB announced that Pak Lah is positive about the Sates request for the money to be returned to Trengganu. Now the snowball effect has started when they lift off the ceiling price of building materials. The effect will be non completion of housing projects all over the country. Contracrors wont be able to complete their obligation because the materials required will be beyond them to procure. In such times Tun Dr. mahathir seems to be an angel that must come to save the bation.

ruby ahmad said...

Hello Jaflam,

All the comments above have said it all. I shall not repeat any. But this I would like to say. I had a dream last night that gave me the answer to resolve my petrol dilemma.

I am now applying to open a petrol station...ha ha. Just jesting.

Thanks for hopping by my blog with your lovely comment. Cheers.

jaflam said...

Salam Zawi,
There were so much statements everyday, justifying the action and measures to overcome the madness that burdening and sinking the Rakyat.

The impacts is coming from all directions internal and external and solutions provided looks more like fire fighting then strategic planning. It’s difficult to find smart, brave and experienced person like Tun in bracing the current turmoil.

jaflam said...

Hai Ruby,
That was a good dream, but I must remind you that the margin for Petrol Station dealer is small, in fact they make more money from the convenience store. Occasionally when they operate 24 hours, they got robbed.

Further more the oil vapors will not be good for your beautiful skin. Pls have another better dream tonight.... like striking gold on your book or becoming lifestyle guru.

FiSHY@iKe said...

Good day captain! I read this from somewhere...

"tepung oh tepung kenape ko naik harge? macam mane harge tak naik, harge beras naik, harge beras naik;

beras oh beras, kenape ko naik harge? macam mane harge tak naik, harge minyak naik, harge minyak naik;

minyak oh minyak, kenape ko naik harge? macam mane harge tak naik, pak lah tak mau turun, pak lah tak mau turun"

Muahaha, just wanna cheer up your comment box, ;D as i read before nearly all of the commenting seriously (not that I'm not taking this matter seriously as I also have a part in this, my car's full tank are now RM30 more than before,:S) Take care sir!

zulfa said...

dear captain,
before the rm1.92 rise, we are at upper middle class. when rose to rm192, we are at middle class. later, rm2.70, plus the domino effect, i dont think most of the normal malaysians are at lower middle class anymore.

the G got to remember that the middle class generates the economy. when the spending power of the middle class deteriorates, the economy will falter. as a chief officer, i felt the pain too. what about others? bosun? ABs, stewards. i understood that some companies still pay ABs at rm800 which is at poverty level.

to make ends meet, people will do anything. most of the crews are frustrated really, even heard some of them sacrificed time and money just to get their local/home mate's ticket and the remuneration was not worth it.


Hi&Lo said...

Dato Jaflam,

Greetings and syabas on your interesting blog.

Who is better qualified than Ruby Ahmad as a lifestyle guru? Multi-talented is she.

You are right abt the oil price is artificially jacked up by speculators. The bubble is awaiting to burst.

In the meantime, how many people have the stamina to endure the pain and tribulations of the high costs of living.

Tho I agree on market forces, the govt shld put in place cushions to absorb the blows we are in.

jaflam said...

Hai Ike,
Thanks for dropping by and putting some rhymes to the topics. We need the laugh despite being heavy topic. A lot of truths in between the laugh.

Hope your study is getting on well despite the little politics in the removal of UIA President.

jaflam said...

Salam Zulfa,
Fully agreed with you on the impacts and the pivotal role of middle class in economy and nation building.

The mariners are still not getting their fair deal here compared to those working internationally. It's the same old story the big corporations are so hook on announcing the billions of dollars that made at the end of the year and yet paid their stuff peanut. When major accident happened they blame the human error.... well peanut = to monkey.

Hope despite the fall back there will a light at the end of the tunnel. The current high demands of professional abroad are forcing the employers to response to avoid exodus.

jaflam said...

Dear Hi & Lo,
Thanks for dropping by and sharing your thoughts.

It is unfortunate that in the 20th Century the world is still being dictated by one country. The bubbles are being created to save the US domestic economy that crashing, as the result of their mischievous adventures in the middle east and rest of the world

Worst still the others are not willing to break free from the grip to shape the global futures. We are just a player that follows the tide and hope to make others happy but not the Rakyat.

Only smart people make smart moves.

U.Lee said...

Hi Jaf, siapa that hero in your profile pic? Ha ha, itu you ke? Ada gaya tu....bachelor time ke?
We had a garden here before and I planted jagung, beans, cabbage, cucumber, chillies...before I can harvest my hard work...the racoons had a feast! Habis kebun saya, game over.
I have been getting lots of messages from friends in Malaysia re the shock of oil price shooting up...a friend told me, "how to have sex like this"? Ha ha...
I will be asking him what has oil price increase got to do with sex, ha ha.
Maybe what goes up know that formula? Ha ha, Keep well, Lee.

Letting the time pass me by said...

I guess Malaysia has becoming more and more a capitalist country..

Who cares about the poor... At least the government seems not to care...
In most oil producing countries, the government cares about the people, that is why they give special discounts for oil. Venezuela for instance sell its produce oil locally at a very low price maybe around RM0.30.

Nonetheless, some other country like Norway for instance sell its oil at the market price but set aside 1/3 of the income/profit in its special oil fund which is reported now amounting some USD250billion...

In Malaysia, the previous administration has always give discounted oil prices to the Rakyats, however, the current government has decided that it will be a burden for the government to continue to serve the Rakyat...

So now, as the Rakyat, we just need to survive on our own... The government are getting more selfish and do not have the time or resources to look into the well being of the Rakyat...

jaflam said...

Hello Lee,
It’s the glimpse of me during the heyday ... life was without worries then just travel and travel.

Sorry about your garden.. dammed the raccoons but then you plants must be so inviting that they even dared your gun to enjoy the vegetables.

Hey it’s true what has oil got to do with sex ???? I guess its no money no honey case heheeeee. Laughing aside the price hike on every item here is driving everybody crazy except the old man. Take care and happy gardening again.

jaflam said...

Salam Let Time Pass,
Thanks for visiting and putting your views across. You have made many good suggestions on this oil hike at your site.

I was talking to a Logistics friend today and was told that the transport charge has increased 40 to 50% despite the Government daily assurance that transport charge is under control. Everyday the Government is announcing measures, incentives and subsidies that going to be implemented to cushion the effect of oil hike. If the oil was reasonably increased then all this daily fire fighting initiatives are not required at all. It’s like creating a problem and then goes berserk in solving it ????!!!!#%&*

Simply don't savvy the intelligence.