When we no longer can travel
Fuel prices are on the rise in Malaysia.
Subsidies are going to be slashed*, consumer petrol will take a bumb, ditto aviation fuel, and double ditto anything and everything (which is literally everything) remotely dependent on energy.
*Makes you wonder whether its a zero sum game: will the Government be able to "save" any money from the reduction of subsidies, and if, yes, then where will these additional funds be allocated.
Goods or services with an inflexible demand will probably not feel the pinch. This means that the local mamak shop roti canai sales will not drop an inch despite the 50sen increase in price (people need to eat), but sales of airline travel tickets will take a drastic hit (people will choose food over travel, any day).
All of this in the space of a year, all of this in the space of 5 years, back when fuel was still "cheap".**
**Taking a longer view, energy has never been "cheap" relatively speaking.
I'm looking ahead, and asking the question: will there come a time when overseas travel becomes too expensive to consider?
In 12 months from May 2007 to May 2008, aviation fuel prices have doubled, from US$80 a barrel to US$171. The increase has led to MAS charging 3-20% more for each route they fly. Will the price of fuel double again in the next 12 months? US$342 a barrel? There are no indications at this time to suggest otherwise. Will they double again the following year, and the following year, and the following year? How soon will it be before we witness the first US$1,000 barrel of fuel?
I'm pretty sure, long before that happens, the bread and butter of airlines (you and me, the average joe), will no longer be able to afford to fly, leading to the death of said airlines.
In just a few short years, our ability to travel will be gone. The portents are in the air, and it looks inevitable. You just have to wonder what other things we take for granted today will be, gone.
Fuel prices are on the rise in Malaysia.
Subsidies are going to be slashed*, consumer petrol will take a bumb, ditto aviation fuel, and double ditto anything and everything (which is literally everything) remotely dependent on energy.
*Makes you wonder whether its a zero sum game: will the Government be able to "save" any money from the reduction of subsidies, and if, yes, then where will these additional funds be allocated.
Goods or services with an inflexible demand will probably not feel the pinch. This means that the local mamak shop roti canai sales will not drop an inch despite the 50sen increase in price (people need to eat), but sales of airline travel tickets will take a drastic hit (people will choose food over travel, any day).
All of this in the space of a year, all of this in the space of 5 years, back when fuel was still "cheap".**
**Taking a longer view, energy has never been "cheap" relatively speaking.
I'm looking ahead, and asking the question: will there come a time when overseas travel becomes too expensive to consider?
In 12 months from May 2007 to May 2008, aviation fuel prices have doubled, from US$80 a barrel to US$171. The increase has led to MAS charging 3-20% more for each route they fly. Will the price of fuel double again in the next 12 months? US$342 a barrel? There are no indications at this time to suggest otherwise. Will they double again the following year, and the following year, and the following year? How soon will it be before we witness the first US$1,000 barrel of fuel?
I'm pretty sure, long before that happens, the bread and butter of airlines (you and me, the average joe), will no longer be able to afford to fly, leading to the death of said airlines.
In just a few short years, our ability to travel will be gone. The portents are in the air, and it looks inevitable. You just have to wonder what other things we take for granted today will be, gone.
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