Saturday 28 February 2015

[Today] Petrol duty hikes may push up prices of goods, services

I refer to the letters “Petrol duty hikes pour more pain on motorists” (Feb 25) and “Reasons for petrol duty hikes sound” (Feb 26). Both writers have a valid point on the pain and gain of the hikes.

As a motorist, after spending so much on a Certificate of Entitlement, I will continue to drive and bite the bullet. I would give up only when motorists are squeezed further, which may be a few years down the road.

Most of the motorists who will feel the pain of the hikes would be the middle income who need their private transport for work, and not merely for commuting.

The lower-income group may also feel the impact, however.

From past experience, when petrol prices go up, the prices of other goods and services, such as deliveries and house calls for plumbing or air-conditioning servicing, rise in tandem.

I am, however, sure that our Government has considered such an impact and has put in place some offset mechanisms, and not only the one-off road tax rebate, for the middle- and lower-income groups.