Today, it was announced in all news media formats that the petrol price tomorrow would be reduced by another 15 cents to $2.30 for the standard RON 97 grade petrol. With that it means consumers would get to save at least RM10 of petrol for each fill.
Still it doesn't do really much to soften the damage done on June. Abdullah Badawi and his advisers lacked the foresight to see beyond the space of three months from that month. Moments after the petrol went to $147, the price fell roughly 45 percent to the current range price of $80 to $85.
Even though the price has dropped three times already, food prices have already gone up. A check to most shops in the Setapak neighborhood reveals that some shops have increased their food prices by another 30 cents. This though excludes drinks.
Another way to improve the chances of drop is of course focusing on the exchange rate. With the fact from many people that the U.S monetary value is facing the risk of losing the value, there would present a realistic opportunity to have the ringgit as equivalent as strong as the dollar, more or less matching the Sing dollar. At the same time, Bank Negara and the finance ministry must consider dumping the US reserves and replacing it with either the yen and euros. It is one way to cushion the fall. The measures to address the recession is but a temporary reprieve. It might happen again either next year or as someone said that the Second Great Depression could hit in June 15 2010.