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Saturday, October 4, 2014

20 cents up per litre, what it means to different people – Ravinder Singh



To the rich, it means fuel in Malaysia is still cheaper than in other countries in the region. The increase means nothing to them. They can happily pay for it.
To the lower income group and the poor, it means a further tightening of the belt to make ends meet on devalued money as a ringgit will get less than before, but they don’t earn more ringgit to offset the decreased value of the ringgit.
To the business people it means an opportunity to increase profits as prices would be increased in round figures that are higher than the actual percentage increase in the costs of transportation and production of goods. They are not going to do charity and absorb the price increases though the government will be saying that there won’t be unfair price increases or that businesses would absorb some of the increases if not all. This is the tune consumers have heard over and over but which has never been true.  
Dear Minister, please tell us honestly how the coffers are not depleted when RM100 wall clocks are purchased for RM3,000 and RM3,000 laptops are purchased for over RM40,000 by “stupid” government servants as recorded in the Auditor General’s reports? Who is responsible for depleting government coffers through irresponsible handling and spending of public money?  It is a case of easy come (through taxes, etc.) and easy go (all kinds of leakages which are left to go on and on). Just make a Cabinet decision and hey presto, money will flow in to fill the coffers. It’s as easy as that for the government, but not for those who have to sweat and toil, some at two jobs, to make ends meet.
So, to take the Minister’s advice, we must go back to feudal times where leaders should not be questioned. But religions teach that people not only have a right to question decisions of the leaders but must do so if the decision are seen to be unjust. So whom do we listen to, our prophets or our leaders?
The fuel price increase is very just and commendable in the eyes of the government and considered very fair by the rich, but to the lower income and poorer people in society, who form a majority of the population, it is unjust. If a low income person needs to drive a small car 50km a day to and from work, it means about 70 sen more a day in RON 95. That’s about RM20.00 a month. But it doesn’t stop there as fuel prices affect everything that needs to be transported from one place to another, and that includes daily necessities such as rice, sugar, fish, vegetables, etc.  
A lot of people are forced to own their own vehicles because of very poor public transport. This in turn is due to the policy of allowing certain parties to make money from the manufacture and sale of private vehicles. The private vehicle ownership policy is a big money churner for vested interests. So it must not be killed by having an efficient public transport system.
How will the lower income people be affected? If vegetables from the Camerons cost 2 sen more per kg to transport, the end consumer will have to pay a rounded up figure of at least 5 sen, and more likely 10 to 20 sen, per kg. Add all other cost increases and a low income person may have to fork out RM50 to RM80 per month. If he has school going children, he has to pay more for the school bus. Thus he could be hit to a tune of RM100 pm or more due to a 20sen per litre increase in petrol and diesel price.
The fuel price increase therefore hits the lower income and poor people. They have to pay more for their daily needs. The rich do not suffer the same, or any consequences.
Our treasury should be in the black at all times as this is a country with plenty of natural resources. It is the mismanagement, corruption and leakages that are the cause of “depleted coffers”.
Would any minister (if he were a low income individual) spend his hard earned money the way he spends or approves for spending public money as a minister?
*Ravinder Singh reads The Malaysian Insider.

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