Tuesday, June 3, 2008

What's The Story, Fuel Subsidy?

It's going to be the same ol' shitty process at ALL petrol stations again later tonite when every Tom, Dick & Harry will rush to the nearest petrol station to pump their tanks full before the announcement to increase the fuel price is made tomorrow.

The dreaded price increase will happen AGAIN once the new prices for the 2 new types of petrol: RON95 (normal unleaded - expected price close to MYR 3) and RON99 (super unleaded - expected price around MYR 4) are revealed to the general public. To those who are not inclined with the terminology and meaning of the RON standard for petrol, all you need to know is that the new RON95 rated petrol will be of lower grade and octane, hence less power than the current RON97 at the petrol pumps. The new 99 will be new "super" unleaded to replace the RON97.

Well most will just say, since RON95 will be cheaper, just stick to it and be done with it. As long as the car still runs, there should not be any problems. WRONG!!! Car engines are designed to run on specific octane and RON fuels. It's better to use the recommended fuel specified by the car manufacturer - bare minimum will be RON95.

Most cars on the road with electronic engine management systems will not have much problem running the new fuels. The onboard ECU (computer) will automatically adjust the ignition to compensate for the lower octane fuel to avoid "knocking." Basically to explain this, you need to understand that fuel and air mixture literally explodes in your engine (more precisely in your cylinders) to create power. If the explosion occurs on the wrong time, it will create a lot of heat and wear to damage your engine. So when this mistimed explosions happens, it's called "knocking." Tell tale signs of this happening is when you notice "pinging" sounds and bad fuel consumption.

Those with normal everyday family car will not encounter much hassle using the RON95 petrol since all we want is to just get to point b from point a. Performance seeker with high performing cars however, will have no choice but to fuel their desire and fuel guzzlers with RON99. Anyone with older generation carburator engines might need to take note of this and get more info from your mechanics to avoid expensive repair bills.

So what does all this do to us? Well, higher priced fuel not only means we have to pay more for petrol to pump to our cars. It also means every other thing that we use, eat and buy will be effected as well. Literally every consumer products and services that we use, have to involve fuel burning vehicles (unless u stay in a kampung where "kereta lembu" is still used to cart goods). Higher fuel prices means higher transportation charges hence leading to higher priced goods. It's all a chain reaction. Basic economics dictates that price increase and high demands will lead to the inflation phenomenon. When this happens, you and i will spend more and save less for the same amount of income. Anyone thinks their salary increments is covering their increase expenses? You get my drift? In the long run, those in the lower and middle income group (me and most of you included) will suffer.

Sorry for the lecture on automotive engineering and economics. Hehehehe, both are among my favourite subjects along with politics and history. I just feel that all this shit needs to be informed to the masses to wake them up to reality. Life ain't rosy in bolehland anymore. It's time to speak our minds and work together to solve this issue and not swept it under the carpet.

So what say you Petronas, "Barang Naik" and Pak Lah?

PS: It's now widely reported the prices will be allowed to fluctuate according to market forces by August. So expect petrol prices to hit the roof at MYR 4-5 per liter.

UPDATE: PETROL PRICE INCREASED TO MYR 2.70 AFTER 12AM TONITE. NO ANNOUNCEMENT ON 2 NEW CLASS OF FUEL.

-JonC-

5 comments:

classyadele said...

talk about fuel price rises....just a week ago...petrol in NZ now costs $2.05 per litre..

SIGH SIGH SIGH!

What are ur thoughts on hybrid cars?

Jon-C said...

Can't afford one unless the big "G" decides to lower the tariff on hybrid cars.

I wouldn't mind getting one at all if that happens.

senorita.. said...

seriously..? is it official?

Jon-C said...

Very likely to happen, waiting for official confirmation from the experts in price increase - BN.

anfield devotee said...

Biofuel - it will happen in the next 10 years. No other choice.

As fer price increase, if it does hit the RM4-5 mark per litre, then we are seriously fooked BIG time. Inflation already in the red zone will drive the economy over the abyss.

Then comes the crime wave. Then the bankrupt wave . . . then severe economic meltdown ala Argentina a few years ago.

Fooking hell mate.