Help mitigate petrol price increase

[Sparta]

Are we not tax on petrol? This % formula multiplies the price increase.

For example, if tax is 20% on a $1 item, price becomes $1.20 and govt makes $0.20. If item price increased to $3, price becomes $3.60 and govt makes $0.60, a 3x price increase.

Some Asian govts (china, indon, m'sia) subsidize petrol or stop price increase via admin controls. How about our govt? They happily make 3x more if they can.

I think as a concern citizen, they should understand the pain people are feeling. The very least they should do is said I will take my $0.20 share and no more. Scrap the %-age tax rate to an absolute one. Their tax revenue on tax on petrol would remain the same. And they did not subsidise us motorist, right? This should be a fair policy since it is not welfare at all. In high inflation times like this, govt should put in efforts to put a lid on prices and not go ERP, ERP, ERP, Erapi, rabi, rapi, rapi (FROG-LIKE sounds; after a while, people can sick of hearing the word, ERP).

 

[contaxable]

There is little we can do to influence petrol prices here. In some countries, people go on strikes on govt's nonchalant role. But a strike would worsen the investment climax and made the merchants suffer more.

Many commodities are linked and we should be expecting more increases in local price of goods by as soon as next week.

It has come to a stage where it is what i called freaked domino effect. The frequent surges in cost of raw materials is driving many companies nuts. Without going into reds, they have to flash out new price tags again and again.

Petrol prices is only the tip of the iceberg. The govt has a much bigger role to play to regulate prices of essential items for every household. Imagine if a bag of 10kg rice becomes $120 and water from the tap becomes $10 a litre, you would expect quite a lot of people packing up and leave.

 

[creampuff]

Wake up. Please tell me when has there ever been any meaningful subsidy or financial relief of any sort here, especially in the context of the motoring public? All I can say is the cartel-like behavior has long existed and will long continue.

With regards to essential household items we have been told to switch to generic brands to save money (a token lip service and a pittance in the wider context) but that there are no plans to regulate prices of essential goods. Basically you're on your own and don't expect to get breaks in this period of inflation.

 

[rvxing]

The oil just went from US$111.80 per barrel on Monday to US$99.35 yesterday (11.14% drop), are the cartel going to reduce petrol price? My guess wait long long, they will say that the other costs also went up.

 

[Reno]

Welcome to Singapore....!!! :sweat::sweat:

 

[contaxable]

Wake up. Please tell me when has there ever been any meaningful subsidy or financial relief of any sort here, especially in the context of the motoring public? All I can say is the cartel-like behavior has long existed and will long continue.

With regards to essential household items we have been told to switch to generic brands to save money (a token lip service and a pittance in the wider context) but that there are no plans to regulate prices of essential goods. Basically you're on your own and don't expect to get breaks in this period of inflation.

Indeed, I fully agree with you on the plight motorist is in (with myself inclusive). And yes, if there is any non-profit body who is willing to stand up to pin point an active cartel (forming an oligopoly) is at work, motorists will have better days. Put it another way, who can afford to offend companies that invested big bugs on refineries? And if a few of the cartel members decided to pull off the plug after the clam down, the loss is gonna be huge in terms of tax revenues, tax on goods and services, retrenchment, dampened investment climate, loss of future revenues from export of refined oil & materials.

We will have roaring support for the one who dares to sue the cartel in high court, but I currently do not think anyone in the right frame of mind (or have the financial backings) nor wits to be able to convince the judges here they are a lucrative bunch. The judges may have the third eye in upholding evil as they know what's best for you and me.

As for essentials, haven't we heard of an iconic example from TV about a family spending a mere $40 on utilities a month? The family probably salvage and recycle every drop of precious water (and urine) and probably switches on one energy saving 5 watts lamp for night. Till today, I still cannot beat that crap as my utilities still hover in the hundreds. If that is achievable, it is a huge compromise on our lifestyles, and are we ready for the change?

Well, it is true we cannot beat them, but there is little that can we do. Hopefully, the unions will do something other than squatting behind jackports.

 

[contaxable]

The oil just went from US$111.80 per barrel on Monday to US$99.35 yesterday (11.14% drop), are the cartel going to reduce petrol price? My guess wait long long, they will say that the other costs also went up.

Isnt that good news? Probably its just and easter break. I hope it does not spike so soon again.

 

[creampuff]

Oil prices have been ramped up principally due to speculation by hedge funds since late last year. Usually there is a pattern of stockpiling before the winter months in anticipation of higher heating oil usage. However the winters have not been severe in recent years and there is more than adequate stocks globally. The reason why there is a correction downwards is because there is an impending supply overhang coupled with the very real prospect of a US recession. When the world's largest economy goes downwards, it will inevitably spell less demand for oil. Oil speculators are merely taking profit now. Same with investors in other commodities. Cashing out before the bubble bursts.

 

[night86mare]

Some Asian govts (china, indon, m'sia) subsidize petrol or stop price increase via admin controls. How about our govt? They happily make 3x more if they can.

ehhhh

price controls and meddling with the market MIGHT and CAN have quite detrimental effects on the market. economic modelling does suggest that when you put price ceilings on any goods, you will tend to end up with excess demand - and therefore shortages. which sort of destroys whatever intentions you might have had when implementing these controls in the first place. and if you counter with remarks like "oh, but at least people get to save money".. then no, a while back when the us was implementing price ceilings, apparently queues at petrol lines stacked up.. and what do you get? people paying an implicit price by standing in line, when they could be carrying out productive activity.

similarly, rent controls in new york in the past had caused extremely negative consequences - you can google for more information on the whole fiasco.

one has to see what is happening - admittedly singapore does not have much control over global oil pricing, nor do we have our own oil.. thus you cannot simply compare it in such broad terms.

there are other ways of helping people out.. putting it in simple terms, market prices are a representation of the real life situation that is happening, and attempting to manipulate them.. are effectively an indirect attempt to ignore reality, instead of addressing it. i cannot say i will agree with oil subsidies, especially with the governmental examples you have brought up - they are hardly adequate in other aspects.