28 February 2006

Petrol Price Hike Economics 101 - The Chain Reaction


When the days seems gloomy,
When everyday seems rainy,
Need not to worry,
You still have Rojaks Daily.



It is already a fact that our petrol price is gonna be increase by 30 sen starting from today and I m not gonna talk bout that anymore. Today I wanna look at the effects/chain reaction of this increase.

I guessed we all are already expecting the price of daily consumable goods will be increased sooner or later this is because those goods which we purchase daily for our basic needs have to be transported to the shop by truck, lorry or van. Not forgetting the factory which manufactured this products also require fuels to generate electricity to operate their machineries. There is no doubt about it, an increase in fuel price will leads to more expensive cost of living.


Lets see, For an Average Joe like me, this is the break down of how we spend our income before the Fuel hike :

Before Fuel Hike and Frantic Price Increase.


DescriptionsRM
Salary2,000.00
Petrol for Car
350.00
Food (Monthly for 2 person)
900.00
Groceries 250.00
Savings
200.00
Shopping & Entertaiment 300.00
Balance ZERO!


After Fuel Hike and Frantic Price Increase.

DescriptionsRM
Salary2,000.00
Petrol for Car
400.00
Food (Monthly for 2 person)
1000.00
Groceries 300.00
Savings
200.00
Shopping & Entertaiment 100.00
Balance ZERO!
If you look at the above table you will notice the different of spending pattern before and after Fuel hike, with the same amount of income I now cant afford to go shopping or to buy stuffs to entertain myself anymore. My Shopping and entertainment budget were cut from RM300 to RM100.



Please also note that consumer will also be spending more on basic products for theirdaily basic needs, they will of course be spending more but the quantity they are getting is same as before the fuel hike.

What makes the ecomony grows ? Spending power of course! if everyone is buying then all businesses will enjoy good profit in turns they will buy houses and cars and spend lotsa money going to karaoke and vacations but TODAY with the same amount of salary we are getting, we cant afford to spend like we used to be. Businesses will suffer, if there is no business then businesses owners will not need to employ more employee to help them, this in turn will increase the numbers of jobless people which are already in the market. and trust me LARGE UNEMPLOYMENT = TROUBLE !!!

What will it takes for "them" understand that LOW SPENDING POWER = ECONOMIC DOWNTURN !!!

We are all FARKED ok! F.A.R.K.E.D !!!! Worst are yet to come!
Thats conclude our Economic 101 lesson today.

Have a CRAPPY DAY!!!

21 comments:

  1. A crappy day indeed

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  2. OI!mahai, you under declare your salary. you under declare your savings, you over declare your expenses. Haloooo bradder, Jabatan Hasil watching you liao lah.

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  3. relax lah...u guys have been expecting that coming rite?
    BTW, u under declare!

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  4. Anonymous4:16 pm

    hey,

    ou forgot about rent, car installment, home loan installment, study load installment, clothing, toll and etc etc

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  5. erm huh... it's true that malaysian are expecting it... but 30 godamn sen its alot money k. let alone the inflation,and just claculate you're petrol expenses k. full tank wira will cost you 40 litre x 1.62 = RM64.80 and now will cost you 40litre x RM1.92 = RM 76.80 the diffence is RM12. let's assume you pump full tank once a week and you're yearly expenses for petrol will be increase by RM12 x 52 weeks = RM 624. and i'm only talking about a basic proton wira. what about those people who drive waja, perdana, or maybe an import car where petrol comsumption is much higher?

    by the time when inflation set in, everything else will be more expensive. and do our gaji raise that fast too??

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  6. hey inevitale,

    there is alot of item missing in your expenses break down. example, car maintainece, car insurance, life insurance, road tax and etc etc....what if your car break down? you will need money to fix it back! and you're maintanace for household? let just say you run out of gas to cook... you need to pay for ur gas! and what if you friege not working ?? you will need to get a new 1. and now malaysian are really into gadget right??? how much does high end camera phone cost huh/??? muahahhaa ah pek, r you still thinking that inevitable under declay his saving???

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  7. Mahai, you still have saving ah? I'm gonna eat grass soon. :p

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  8. buy trishaw and get an ah pek to cycle lorr....so nice...own driver somemore

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  9. this is just the beginning of a very bad time indeed.

    no doubt increase was expected, but did anyone really thinkg 30 sen up is really wise?

    let's see where this leads us to ...

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  10. gu thau long kau5:44 pm

    With that kind of price hike, nowadays I kena sell sperm to survive. Someone go ask those guys that if price of crude oil relaxes, petrol price will drop or not? Somemore, those people must keep their words and no more increases for the year otherwise, I kena sell blood.

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  11. Anonymous7:44 pm

    I bet the crime rate will increase also... There's a lot of people out there who will do basically anything just to get by...

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  12. Saylong7:47 pm

    ngia mieh ! you still got RM100 for entertainment and shopping ar?? i already changed my car to kancil liao. like that i gonna ride motorbike to work. your internet fee leh?? i hijack my neighbour wifi to save cost la...

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  13. Just got it from the news, the inflation rate this year might go up to 3.8% if the electricity charge also increase next month.

    TNB just got the approval to increase from the goment.

    Worse situation is coming, everyone !!

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  14. Chibye you no leg wan meh ? Walk la!LOL! You can oso sell your mah-si-li!

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  15. It's not about fuel price increase coz it would probably add $50-$100 to motor vehicle cost. But the repercussion will be astronomic when all the other industries react to their higher cost and passing it down to consumers. Nothing can stop this tsunamic and spiralling effect.

    Brace for the worst!

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  16. When everyday seems gllomy,
    When everyday seems rainy,
    Need not to worry,
    You still have Rojaks Daily,
    Rojaks Daily is very funny.
    Rojaks Daily is very looney.
    Can he sponsor us money?
    Scold garmen,will he be berani?
    Bomb garmen,like bombings in Bali?
    Bomb liao then lari.
    Stop price going up tiap-tiap hari.
    Make everyday very sunny.

    lolz. we've been farked. Pokkai chimz. lolz.

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  17. What crappy day...
    ah pek correct la... u under declare already... LHDN is watching over you leh...

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  18. Chilake12:33 pm

    Jayus, I like that poem you put up there. It is funny, makes some sense.

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  19. check out this article for the history of our petrol prices, and weep...

    http://www.think.com.my/thinkrap.cfm?krp_ID=8

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  20. lolz. thankiew.

    ReplyDelete

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