Oil price

It might be late for me to talk about oil price since this issue has been discussed in newspapers, television and some other media. I was busy these few days, studied for BITK exam (this exam is for those who get RM40 allowance working in finance section -- if you pass this you will get RM40 extra, yes I know it is peanut but no one give you money for nothing ok?) which the exam was yesterday. It was very hard. Yes, no one will give you RM40 for free... remember?

At first I got a sms about the oil price will increase in August. Then I got another sms telling me that the oil price will be increase on Thursday June 5 2008. This was the worst oil price increment ever in Malaysia's history. Why?

1. The increment was announced without warning within 24 hours.
2. It is 40% increment worse than before -- which the price now is RM2.70 per liter (78 cents increment from the old price)

Ok I got some informations through newspapers, television, radio and also blogs. There are some blogs that catch my attention. They are Tun Dr Mahathir, Zaharuddin, Dr Mohamad Khir Toyo and Patrick Teoh.

I love this fact by Tun Dr Mahathir :

Can the Government subsidise? I am the “adviser” to Petronas but I know very little about it beyond what is published in its accounts. What I do know may not be very accurate but should be sufficient for me to draw certain conclusions.

Roughly Malaysia produces 650,000 barrels of crude per day. We consume 400,000 barrels leaving 250,000 barrels to be exported.

Three years ago the selling price of crude was about USD30 per barrel. Today it is USD130 – an increase of USD100. There is hardly any increase in the production cost so that the extra USD100 can be considered as pure profit.

Our 250,000 barrels of export should earn us 250,000 x 100 x 365 x 3 = RM27,375,000,000 (twenty seven billion Ringgit).

But Petronas made a profit of well over RM70 billion, all of which belong to the Government.

By all accounts the Government is flushed with money.

There are polls on Dr Mohamad Khir Toyo's blog :

Pada Pandangan Anda, Siapakah Calon Terbaik Mengganti Pak Lah Suatu Hari Nanti

Adakah kepimpinan tertinggi UMNO perlu ditukar?

Cool isn't it? As I promised to some bloggers I will try to write in proper manner which I will be neutral -- not bashing any side even though I know it's so hard since everybody knows what is going on. There are some actions that can be taken :

1. Boycott - Some of us might think this is the best way to stop the oil price. But is it possible? For how long? Boycott is not the best solution in my mind in fact in your mind too. After all our home is far away from the workplace and we need vehicle from one place to another.

2. Public transportation - It is easy for those single male or female to use public transport. But what about those who has family? Public transport not quite suitable for them. The public transport like bus never punctual which make the whole family have to wake up so early in the morning for work and school. Talking about LRT (to make it simpler it's a train), not all places in Malaysia have LRT in fact not all states have this facilities. So, to say public transportation is the best choice -- I don't think so.

3. Buy motorcycle - Some of my friends even suggested to buy a motorcycle. How relevant? Again, back to number 2 it is not suitable for people who has family. Yes, it is a great advantage if you are not married. You should use motorcycle instead of car. You can save a lot of money even though it is more risky than a car.

4. Buy bicycle - This suggestion goes to people who live near to his workplace. This is the best vehicle ever since it is environmental friendly and never use petrol. But how many peoples that are so lucky to live so close to their workplace? I bet you can count by fingers.

Since all above are not suitable (at least for me who go to work with mom and sister), I guess I have to use car and still spending money for petrol.

What we expect from government?

1. Increase salary - Since the cost of living increase, I guess it's time for government to increase the salary as well. Not only in government sector but also private sector. If you compare to other countries, their salary are higher compared to us. So, with this oil price increment I expect items price like groceries will be affected. If the salary remains the same big inflation problem is going to occur.

2. Financial Education - Some of us still struggling in maintaining their finance. Most of Malaysians are lack of financial knowledge which is going bad each year. When thing like this happen, to those who live with enough food to eat and enough food to live based on their salary will suffer the most. They need to learn how to do budget and try to save more. But how possible if the salary remain the same? Back to number 1. This number 2 only can be implemented if government increase the salary at the first place.

3. Maintain groceries price - Government should take initiative to maintain the groceries price. Most shops and malls will increase the price due to transportation charges involved. Yes, it is again about the petrol. Malaysians are suffering badly from the oil price and to live with everything expensive really a hard thing to accept. The price might be a little expensive than before but not as high up as a mountain.

Government should make some efforts to calm us, Malaysian. With ideologies from some parties which is positive and relevant, it might bring chaos to the country such as demonstrations and worse a riot. We do not want to see this kind of incident happen in Malaysia. As far as I can see, no strategy and positive action has been taken yet. We have so many brilliant and extraordinary ministers and I believe they can think of something. Some peoples say "Change your lifestyle..."

Honestly, I miss my old Malaysia and hope everything just back to normal. Amin...