HOW TO MANAGE THE RECENT RISE IN FUEL PRICES ?

HOW TO MANAGE THE RECENT RISE IN FUEL PRICES ?

By Kanageswarri Krishnan

2013-121710

Topic : Ministry of Finance

On September 2, 2013, fuel prices in Malaysia increased significantly due to the reduction of subsidies by the government of Malaysia. As a result, both RON95 petrol and diesel increases 20sen more per litter - which is a jump of about 10% compared to previous prices, (Bernama, 2013).

While there is no faulting the government's intention (which is to strengthen the position of the nation's fiscal deficit by reducing fuel subsidies), there is no doubt that the price hike would affect the lives of Malaysians. For those who drive a long way to work or live on a budget, hundreds of Ringgit to fork out each month on fuel could even lead to drastic changes in lifestyle.

However, the new price of fuel is a reality, and if this is affecting Malaysians greatly, need to react accordingly to help ease the financial burden greater than owning and driving a car. Obviously, spending money to keep your car in top condition and buying a more fuel efficient car are some things you can do. But not everyone has the resources to do in the short term, (FreeMalaysiaToday, 2013).

As a Ministry of Finance, I would like suggest some methods that Malaysians public can take to combat the recent rise in fuel prices, without having to spend additional money from their wallets:

·      -   Drive Less Aggressively

Everyone knows that aggressive driving (such as rapid acceleration and braking) to use more fuel, but what you might not know is that it can reduce fuel efficiency by as much as 33%. Based on US Department of Energy's, aggressive driving on highway and city reduces gas mileage by 33 percent to 5 percent, respectively. Specifically, the Malaysian context, you burn with the desire to RM24 off a 35-liter tank RON95 petrol to run too much aggression in the North-South highway, (TheStar, 2013).

What Malaysians have to do: Drive safer

Malaysians Potential Saving: Up to 33%

·      -   Keep The Vehicle Within The Speed Limit

Most people have the impression that the faster you drive, the more they save. While it is true to some extent, driving beyond the speed of optimal fuel consumption (which varies from car to car) would result in the rapid loss of gas mileage. By constantly working the car beyond its optimum capacity, it may also cause engine damage that will come back to haunt Malaysians financially in the future.

What Malaysians have to do: Observe optimum speed limit of your car

Malaysians Potential Saving: Between 7 – 14%

·     -  Remove excessive weight from your car

If you used to keep things in your car trunk, it might be time to start thinking about removing heavier objects such as golf clubs or the baby stroller that has been sitting there since your teen was still a toddler. According to official sources, each 100 pounds (about 45 kg) reduces fuel consumption by approximately 2%. And guess what, the more the model of car you own (which affect most Malaysians instantly), more than the overweight will cost you.

What Malaysians have to do: Remove junks from your car

Malaysians Potential Saving: 2% for every 45 kilograms of excessive weight

·      -   Maintain The Tires At The Right Pressure

Experts estimate will reduce 0.3% for every 1 PSI (for example, the unit of measurement of tire pressure) drops four tires on fuel consumption. In the meantime, you can get a lot more risks on the road just driving the car, inflated tires. Thus, fuel savings, and your own safety, make sure check your tires constantly.

What Malaysians have to do: Maintain your tires at optimum pressure

Malaysians potential saving: 3% for every 10 PSI

·        - Don’t Idle    

Many Malaysian drivers have a habit of waiting for their cars switched engines. Based on fuel economy perspective, that is a serious No-No, because the constant burning of fuel when the engine is running (even though the car is not moving). According to the Consumer Energy Service USA, you lose one mile (about 1.6 kilometers) worth of fuel every two minutes in the car idle. In addition, excessive idling is actually causing damage to your car engine parts due to accumulation of cylinders. Generally, if you're going to idle your car for 10 seconds, please turn off the engine, (FreeMalaysiaToday, 2013).

What Malaysians have to do: Do not idle in your car with the engine switched on

Malaysians Potential Saving: 1.6 km worth of fuel for every 2 minutes you idle

·       -  Make full use of the privileges on your credit cards

If you're old enough to drive, you probably own a credit card and if you happen to be using some credit cards that give you cash back rewards gasoline (for example, Shell Citibank Gold Card provides 8% rebate Shell fuel, OCBC Titanium card gives you 5% cash back major fuel brands, etc), it's time to start Malaysians use their cards now. In Malaysia, many people actually use their credit cards without being fully aware of the discounts and privileges they are entitled to. If u still using of generic credit card rewards no relatable, it's time to go to another, (imoney, 2013).

What Malaysians have to do: Take advantage of cash rebate privilege on your credit card

Malaysians Potential Saving: Up to 8%

References:

·         The Star, [Online], Available from, http://www.thestar.com.my/News/Nation/2013/09/02/fuel-hike-will-burden-people.aspx  [Accessed 15th September 2013]

·         Bernama, [Online], Available from, http://www.bernama.com/bernama/v7/sp/newssports.php?id=974929  [Accessed 15th September 2013]

·         Free Malaysia Today, [Online], Available from, http://www.freemalaysiatoday.com/category/leisure/2013/09/06/6-tips-to-combat-the-price-hike-on-fuel/ [Accessed 15th September 2013]

·         Imoney, [Online], Available from, http://www.imoney.my/credit-card/petrol [Accessed 15th September 2013]

·         Consumer Energy Service USA, [Online], Available from, http://www.consumersenergy.com/ [Accessed 15th September 2013]

·         US Department of Energy's, [Online], Available from, http://energy.gov/ [Accessed 15th September 2013]