Assalamualaikum
It has been more than a month since an article (if you consider my writing as an article) being posted here.I was caught up with the fasting month and raya.In the same time I was busy putting effort to lost weight and get another job.
So lets put aside my normal but looks so busy life and looks to the latest price increment for RON 97.RON is a simplify for research octane number.It is a number that shows a sort of fuel capacity to vaporize.The higher the number the easier it gets to vaporize and easier to burn.That is why this fuel is used by high performance engine.If they switch to RON 95 then they will come across a phenomenon called knocking as a result of combustion that take place at non-ideal condition in the engine.
Enough with engineering and technology and lets have a look at the economic impact of this increment.Written in todays newspaper, an opposition personnel claimed that we gonna face more severe inflation due to this increment.However from my point of view,I cannot see this coming.I cant see this increment to bear a huge impact among middle class consumer.
First of all I will touch into whom did really use this type of fuel.Base on my very little reading and general knowledge,it is consume by high end car which in Malaysia market worth 200k and above.Who can afford car worth this much?It should be someone with annual worth no less than 120k.Can they afford to buy the fuel?certainly they can.Should they claim it hampers their monthly budget?I don't think so because if they can opt for lower end car model with smaller engine capacity,cheaper road tax plus cheaper monthly loan repayment and good 2nd hand value.There are a lot of cheaper option in Malaysia.There are choices but it is up to us to make the choice on how it will affect us.
Will this results in increase in price for consumer goods?It should not and preventive measure should have been taken by government to give assurance to the consumer and a warning to manufacturer.Furthermore lorry use for logistic use diesel as their fuel and the price remains at RM 1.90.With that respect I would like to advise government to get something in line to gave assurance to consumer that everything is in control.Especially those in middle and lower income group.We should not capitalism economy being so dominant when we seek for a better living even so in a moderate way.
Anyhow,for the time being no direct impact has take place yet.We should pray there are preventive measure by government or NGO to prevent price hike for consumer goods.However this post doesn't means I'm supporting further increase in fuel price and I'm more concern of the properties price.Nevertheless I hope this situation to change after the GE regardless which coalition being elected.
Monday, September 3, 2012