Sunday, June 8, 2008

oil increase??an opinion..

While the Ministers and Advisors are telling us that passing on the oil price increase to consumers is an unavoidable step, I really doubt that they understand what the price increase means to the man on the street (basicly us...!!)

Lets be clear about this, the people who are truly affected by this price increase are those who pay for their petrol from their own pockets. Those whose fuel is paid for by their employers - be it corporate fat cats or senior government servants and ministers - the price increase is merely a concept.

If you are the typical Kamal for example earning RM3000 per month and have only 1 car, drive to and fro work and conservatively clock up 18000 km’ s per year on the road, drive a small “fuel efficient” car that gets 10 liters / 100km, this price increase will wipe out 4.45% (RM1,404) of his discretionary income. Discretionary income is income after EPF/SocSo and PCB.

If you take income after car loan, housing loan and some insurance, the wipe out is a whopping 18.63%

I put the challenge to Pak Lah and his cabinet, instead of giving empty words of sympathy, that you understand how difficult it must be, but we have to tighten our belts, WHY DONT the cabinet ministers all take a 18.64 pay cut. A for will save the government some money, but least it will show the citizens that you too are feeling the pain..hehe.. sharing is caring.. :)