15 August, 2008

Petrol prices: A menstrual cycle?

Before I start I would like to apologize to all women offended with the title. It is not to degrade or put women in a low social rank but it is just my pun intended on the Petrol pricing mechanism. Unlike women who are born with a biological clock so unique~ Petrol does not but somehow man has devised an ingenious way to do it.

SO the deal is that RM0.30 will be subsidized for every liter of petrol regardless of the world price of crude oil. Supposedly the RM2.70 now will be the ceiling price till further notice (knowing the government everything as a clause like this). Is it a good thing that prices at the pump will be revised monthly? I suppose so~ Somehow Diesel has not been mentioned in this scheme (unless I missed it). I wonder why?

Our daily running costs for our vehicles should decrease but what about other costs? Food for example.... majority of the daily produce (if not all) are delivered to the point of sale in vehicles running on Diesel. So logically if the world prices should remain on a downward trend shouldn't the price of Diesel be lowered accordingly as well. Yeah I know Diesel gets a bigger margin of subsidization but an ever lower price at the pump should be all the better right?

Yes prices may fluctuate more often. Maintaining a fixed budget will be very much harder and perhaps even certain investments could be effected by the fluctuating retail price of Petrol. Thus I term it like a menstrual cycle~ because it has a pleasant feeling....well until it bleeds eventually.

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