Petrol Hike - Reader's Reply to Advice

Extracted from Forwarded Mail

Good mail with points to ponder upon
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I refer to the letter by Paul Ooi of Colorado entitled Oil prices in
Malaysia still cheaper. I must say Ooi's comparison of petrol prices in
Malaysia and the US is not logical, to say the least. He implies that we
Malaysians should not be so agitated over the recent hike in petrol
prices because we are paying US$2 per gallon while the Americans,
Japanese and Hong Kongites are paying US$2.35, US$3.50 and US$4.50
respectively.

I am totally surprised that it did not occur to a well-traveled person
like Ooi that Malaysians make much less than the people in the three
places he named. Malaysia has a GDP per capita of US$10,400 while the
United States, Japan and Hong Kong have a GDP per capita of US$41,800,
US$30,400 and US$36,800 respectively. Now, is Ooi actually saying that
someone who makes US$10,000 a year and pays US$2 for each gallon of
petrol is better off than a person who makes US$40,000 a year but pays
US$2.35 (a mere US$0.35 more) for each gallon of petrol? Doesn't make
that much sense, does it?

I'm tired of the usual banner of 'oil prices in Malaysia are still
cheaper when compared to others' every time price hikes take place. The
government must think we Malaysians are a bunch of donkeys. The fact is,
despite the mediocre education the government gives to most of us, we
can actually do simple maths. If the government had really done its job
all these decades, we would not be plagued by corruption and wastage and
would be doing so much better in the income and purchasing power
departments. The issue of oil subsidy would not even arise as we can
then afford to pay for unsubsidised fuel.

The government also launches into elaborate explanations as to why we
need to reduce subsidies for fuel and inject the salvaged money into
'much needed' development. But since the past four or five price hikes,
our development has remained at that -' much needed'. Can anybody
honestly say that the public transportation system in our country has
improved ever so tremendously so as to finally allow us to depend on it
to get to work, to school, to the market, the court, the hospital, for
meetings, etc?

Okay, so we understand the pressing economic need to put our money in
development, money which will otherwise be wasted away in fuel
subsidies. Understanding, however, does not put food on our tables.
Despite our comprehension of the economics of fuel subsidies, we still
cannot make ends meet. I'm not against the idea of development. It's
just that for the past 18 months or so, petrol prices have increased
about 40%, diesel prices about 100% and I have not had 1% of increase in
my pay. How, pray tell, am I supposed to cope with this increase in the
cost of living? The saying goes that by the time you can make ends meet,
they move the ends. In my case, I was not even close to making the ends
meet, and they have already moved the ends.

For the benefit of Ooi, I present the typical monthly expenses of a
middle-income earner in Kuala Lumpur:

Salary: RM2,600 (after EPF and tax deductions)

Minus:

Housing: RM300
Car loan: RM500
Study loan: RM200
Phone and Internet: RM150
Insurance: RM180
Petrol (lives a distance away from KL to take advantage of lower house
rent) - new price: RM600
Toll: RM180

Salary left for food: RM490

No savings, no entertainment budget, no new clothing, not much to give
the family. And when the time is up for car insurance and road tax,
credit card debt is incurred. Please don't tell this person to take
public transport. First of all, public transport does not reach where he
is living. Secondly, I really would not dare to ask him to rely on the
public transport to get to work and meetings on time. If he is a lawyer,
then he definitely does not want to take public transport unless he
doesn't mind his cases being struck out by the court due to his late
appearance.

If that is the life of a middle-income earner, my heart really goes out
to the low-income earner.

I do not think Malaysians are being unreasonable about the hike in fuel
prices. Trying to make ends meet and making sure the family has enough
food is not unreasonable. Feeling desperate and angry when price hikes
takes away the ability to buy enough food for the family is not
unreasonable. Unreasonable is when one complains about having to buy
less Gucci shoes. Unreasonable is when one tells his countrymen to
change their already marginalised lifestyles when he himself is driven
around in luxury cars while living in mansions and having his petrol
paid for by the rakyat's taxmoney. Unreasonable is when one tells people
earning less than RM1,000 a month to tighten their already tight belts
when he himself dines on the finest food in the finest ambience.

Coming back to Ooi, since he had so selflessly offered advice to
spendthrift and inconsiderate petrol-gulping Malaysians to change their
lifestyle, allow me to reciprocate his kindness. My advice to Ooi is to
come back to Malaysia, make Malaysian ringgit and pay US$2 for a gallon
of petrol. Ooi can also practise what he preaches about reviewing 'our
petrol consumption patterns'. In saying this, Ooi joins Noor Yahaya
Hamzah of New Zealand in admonishing Malaysians over their reluctance to
walk or ride a bicycle instead of taking the car.

Notice how these people are always those who live outside Malaysia? They
give their patronising advice from their comfortable homes in First
World countries with First World incomes and comfortable climate. It
would not be so easy to mete out such generous advice if you were living
in a Third World developing nation with your Third World income and
sweltering heat.