I drive a rather compact car (1.3L) and I use it mainly to drive to and from work. I live only 20 minutes away (by car) from my office, and the place where I live has all the amenities and shops and places to hangout all within walking distance (except for a cinema, which is nevertheless only 10 minutes away by car).
I (used to) spend about RM65 per month on petrol, and with the 40.6% increase in the fuel price beginning today, I’d expect to pay about RM91 per month instead.
If the rebates as promised come through, I’d recoup about RM52 per month on that expenditure, meaning my total outlay per month on petrol would average out to about RM39, which means a saving of RM26 per month.
The question now is whether this monthly saving can offset the expected increase in prices of other goods I spend on per month.
Given the news of the revised electricity tariffs, and the reports of increased prices for food and other essential household needs, I most certainly doubt it.
Oh, and since a lot of bloggers are doing it, let me do it too: Read Malik Imtiaz’s Of Subsidies and Corruption.