24 March, 2008

Skyrocketing Fuel Price

Thank goodness that we are living in Malaysia where the government subsidized some portion of the fuel price. In Malaysia, the petrol price is fixed at Rm1.91 per liter. In Malaysia we don't feel the pinch of rising fuel cost. Whereas in the US, the fuel price is more than USD3.50 per gallon. Just for conversion, 1 US gallon = 3.78541178 liters. Using this conversion, for 1 US gallons, in Malaysia, the pump fuel price is aroung RM7.00 as compared to about RM12.00 in the U.S. The lower cost for Malaysian is because the government spend billions of ringgit annually to subsidized the price difference.
In the U.S., the fuel price varies depending on the fluctuation of the market price of fuel. Users have to pay the fuel price without any subsidy and they have to bear the skyrocketing price due to the rising in fuel cost.
With the increase in fuel cost, users will cut down on the trips or they have to use other alternatives such as public transport which is much cheaper.

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