Thursday, June 5, 2008

Price Hike: Double Whammy

Needless to say, we can expect a domino effect from the hike in prices of petrol (up 78 cents to RM2.70 per litre) and diesel (up RM1 to RM2.58 per litre). Prices would be adjusted monthly based on global oil prices.

Lorry transport companies up north have already responded to the fuel price hike by announcing a 34% increase in transportation charges. The burden will ultimately be passed on to consumers at the end of the chain, e.g. in the form of higher prices for food and consumer goods.

For the time being, bus operators will not be able to increase prices as they need government approval to do so.

Meanwhile, FOMCA warns of the government to be prepared for the aftermath.

As if the higher fuel prices were not enough to dampen sentiments, electricity tariffs will be revised upwards to the tune of 26% beginning from 1 July.

If it's of any consolation, owners of private vehicles with engine capacities of 2000cc and below would be given an annual RM625 rebate, while owners of motorcycles of 150cc and below will get RM150. Despite the rebates, chances are that we will need to dig deeper into our pockets to pay for our monthly fuel charges; unless you have options for moving around.

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