Fuel price hike should invoke lifestyle changes

The higher price of 2.70 ringgit (US$0.83) a liter for unleaded and 2.58 ringgit (US$0.79) a liter for diesel fuel may have come as a sudden jolt, but the resultant changes in consumer behavior are expected to be positive in the long term. Observers opine that while this is the highest fuel price hike in Malaysia to date, the government is still spending 18 billion ringgit (US$55 billion) per year as subsidy. In addition, it is going to pay a cash rebate of 625 ringgit (US$191.08) to owners of private motorized vehicles and 150 ringgit (US$45.86) to motorcycle owners each year to cushion the impact. Federation of Malaysian Consumers Association (FOMCA) Secretary General Muhammad Sha’ani Abdullah said as petroleum is a depleting resource that cannot be replenished, a long-term plan should be put in place to safeguard consumers from sudden shocks. Its communications director Mohd Yusof Abdul Rahman said the public should review their lifestyles and curtail spending. Those with spare land around their house should use it productively by planting vegetables while those in high-rise apartments could grow them in pots or by hydroponics. (June 14, 2008)