Finally the hammer is down!

I just received a call from a friend of mine a few minutes ago. He expressed his surprise over the phone on the increase of the fuel. He was just coming out from a petrol kiosk in KL, and he stressed to me that the petrol price has gone up by RM 0.78 a litre, and RM 1.00 a litre for the diesel. That would mean that the new pump price for RON 92 and RON 97 will be RM 2.70 a litre! Ha! Ha! What a joke! That is an increase of 40.6%!!

There could only be one reason why the so called "Bersih, Cekap dan Amanah" slogan driven present federal government took such a drastic yet unpopular move.

Such a move leads to a clear testimony that our federal government is running acute shortage of money in its coffers, or maybe it is in the verge of running an insolvency government. Is our government running broke? Will the promised 9th Malaysian Plan come to an end? Or were the people behind the nation's management team made a blunder in spending? The untimely purchase of the military logistic equipment (the submarine and the fighter jets), the unnecessary 'Angkasawan project', the various economic corridors which is yet to reap returns, the sloppy awarding of contracts in PKFTZ, the lavishly funded 'Monsoon Cup' project, the mis-channelling of state and federal funds prior Federal Election, etc.,etc., strengthens my believe that the government had been mis-managed!!

Having said that, nothing can be done to revert back the new price change ruling. So, friends, now it is up to us to adjust ourself to the new petrol pump price. I can opine that we should adjust our lifestyle from now on. As in my case, this is what i will do. Please refer below to my personal inflation list which i constructed from January to February 2007(based on actual daily life).

F&B - 0.26%

Housing/Utilities/Fuels - 0.53%

Furnishings/Household - 0.00%

Health - 0.00%

Transport - 0.44%

Communication - 0.22%

Recreation/Culture - 0.01%

Education - 0.01%

Restaurant/Hotel - 0.00%

Miscellenous - 0.13%

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1.60%

My personal inflation rate for the month of Jan-Feb, year 2007 was 1.60% of which fuel consumption was 0.53%. In February to March 2007, my inflation rate was 1.75% ;which fuel was 0.69%. In March to April 2007, the inflation was 1.90%; of which fuel contributed 0.49%.

On the average of that three months, the fuel contributes about 0.57% from my personal inflation rate.

Well, the figure is only slightly higher than one third of the gross personal inflation rate and any hike in retail petrol pump price will not 'eat' deep into my pocket, drastically.

However, having said that, i am going to make a little alterations in the way i allocate money into each of my expenditure catergory as shown above. Here's what i am going to do:

1. No more daily purchase of newsprint papers. Am going to spend more time reading news online.

2. No more watching TV (reduce electricity cost). Instead, will go for the movies once a week.

3. Be very selective in choosing foods and drinks at restaurants. Possibly will go for low price vege foods.:)

What will be your counter measures?

Regards,