Saturday, October 25, 2008

Overpaying in Malaysia

To be honest with you, I'd already gotten used to Malaysia. However, there are some things that I long to have like my own car, cheap stuff and a host of other things. I've come to realize that living in Malaysia is really expensive. One may argue that food is cheaper and stuff but I beg to differ so. Yes, eating at restaurants are cheap compared to US but buying food from the supermarket are really expensive. Case in point is a pint of Haagen Daz costs RM30.90. In US the price is 3.50 (this price is incredibly marked up. Typically it costs around 3 dollars). You don't need to be good in maths to realize how much we're over paying for stuff. Granted this is luxury items, there are many other stuff like sphagetti and stuff which I do not consider as luxury food items and yet they're really expensive.

Let's get to transportation. There's no need to go through the fact that we're overpaying for a car. The government loves to tell us that they're subsidizing our petrol. Lately they had reduced it to a mere RM0.30/litre which is peanuts as 30 cents can do jack in RM currency. Nevermind about that, lets take the current price of oil per barrel. From oil-price.net, the price per barrel is at USD64.60. Let's overprice our USD and set it at 1USD = RM3.60, which at USD64.60 = RM232.56. A barrel of oil equals to 117.35 litres. So RM232.56 divided by the 117.35 litres would come out to about RM1.98 per litre. Minus another 30 cents subsidy that is supposedly given to us would amount to RM1.68 per litre. Right now for those who are living in Malaysia we all know that we're paying RM2.30 per litre. So aren't we like overpaying our petrol by over 30 cents?

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