Together with the announcement of the price hike, it is also decided that a rebate of RM625 will be paid to registered owners of vehicles below 2,000c.c. According to our Second Finance Minister, the amount is sufficient to offset the RM0.78/litre increase in pump prices so long we travel within 50km per day. This translates to RM62 worth of rebate per month.
Let's do a quick check on the figures. A normal car typically consumes 1 litre of fuel to travel 10km. This is achievable provided if you drive "economically" as suggested by the cost-saving articles - no revving, constant speed, light footed, etc.
Travelling 50km per day will consume at least 5 litres of petrol. This translates to paying an additional RM 3.90 per day (RM0.78 x 5 litres). If my calculator is right, this means that the same driver has to pay an additional RM 117 per month! It really does not require a genius to work out this simple sum. Even a primary school student can solve this mathematical equation.
Coincidently, in today's newspaper, a proud owner of a hybrid car claim at he could travel twice the distance with the same amount of fuel. If this is true, then our Second Finance Minister may have been assuming that most cars in Malaysia are hybrids. Hybrids aside, it is not possible to find a 100% petrol-powered car that could travel 20km for every litre of fuel. If it is possible, then hybrid technology itself would not have even been created.
Based on the above, we can assuredly conclude that the RM625 rebate will never be sufficient to offset the impact of the price increase. This despite using the most conservative of circumstances. Many are expected to travel more than 50 km per day. This does not yet include fuel being consumed when the car is idle in peak-hour jams.
The only way for the RM625 rebate to be better off than before would be those from the high and super high income group. These are people who own five, six or perhaps 10 or more cars. The cars, though idle, will generate income for its already wealthy owner.
This being the case, the noble purpose of this rebate itself, which is to soften the blow of the price hike on the low and middle income group, will not see the justice it was meant to achieve. On the contracy it seems the rich will benefit even more under this scheme.
Perhaps, our Second Finance Minister would have gained more "mileage" if he were to acknowledge that the RM625 rebate is actually insufficient to offset the price hike but it is a sincere token from the Government to help soften the burden of the people.
This would have eliminated any hint of insult the statements would have inflicted on the people's intelligence because common sense will always prevail.
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