Spiralling oil prices - my point of view.

I just came home from dinner. From what I observed, there are less people on the road and the whole city is somehow more quiet than usual. So I deduced that its because of the recent oil price hike - 78 cents to be exact (for petrol) that caused much agony to the people.

Yet, I feel compelled to say something because I've seen how people, especially the middle income group, whine and complain about it all. What people don't realise is that the oil price now is pretty much out of the Government's hands, so no matter what you do, be it holding a street protest, hurling tomatoes at the politicians or scratch their cars, they still can't do anything. The oil price is where it is at now because of one word - speculation. Futures and option traders drive the oil price up by over-speculation, drawing on petty little news like a faulty drill pipe at some obscure offshore oil platform owned by a big foreign oil company which could POSSIBLY cause a shortage in oil to induce a spike in commodity oil price. Or maybe the ominous, yet highly improbable rumour that the US is gonna attack Iran soon, making the impending oil shortage scenario seem even real. Yet, all this is only a ploy manipulated by unscrupulous traders seeking to make a quick profit from the movements of oil prices. So in short, the real problem lies in over-speculation, not simple market dynamics or supply and demand, which many of the common people believe. If it really is oil shortage we're facing, people would be lining up at petrol stations or oil tankers would be lying idle on the seas (borrowing a quote from Datuk Idris Jala, CEO of Malaysia Airlines).

In my humble opinion, the Government's move in removing the subsidies is correct. Why? We should let free market forces dictate our economy, not the other way round. By giving fuel subsidies, we are essentially creating a very fragile and fake economy which relies on handouts, reducing efficiency, competitiveness and productivity. So what's the fuss when the Government decides to withdraw something that shouldn't be given in the first place? These people, especially business owners, are so narrow-minded. They couldn't look at the bigger picture - more competitive and productive economy is actually good for business. Give fuel subsidies equates to the act destroying Malaysia's economy in the long run.

Enough about the whining part. What we should focus on is how to overcome this problem. Common people whine because they let the spike in oil price dictate their lives. They are like Chicken Little, running around yelling that the sky is falling. Sure, it may be a troublesome affair and middle-income group might feel the pinch. Yet, the solution is not to pressure the Government to help and intervene. This only makes ourselves too lazy and dependent, not seeking ways to reduce the burden like we should be doing. The point is not to say " I cannot afford it. " We should instead say, " HOW can I afford it? " This simple statement is quoted from Robert Kiyosaki, author of best-selling 'Rich Dad Poor Dad'. By making the situation tougher than it already is, our brains juices will flow to start seeking other ways to afford our current lifestyle even with the increase in oil price.

We let ourselves get pushed around. When oil prices increase, we run around like Chicken Little. We say we cannot afford this or that. We're gonna say life is unfair. This is when the world pushes us around. What we never realise is how NOT to let the world do that. The world is fair. Push back, and you won't get pushed around. Most people live in the rat race. They earn an income, use most of it and have little left at the end of the month. Why could they not just take a portion of the salary and invest it first before spending it? That's why the rich gets richer and the middle-income group stay at where they are. I simply respect Mr. Kiyosaki for his wise teachings. His book is profound and contains many simple reasonings. I respect the power of capitalism. Of course, people say capitalism as an economic system is brutal and unfair. However, learn to harness it, and you could get out of the rat race and be financially free. This principle is more important now, what with the oil prices going up and all.

My conclusion is, if you are one of those people who complain about oil prices, think again. You're letting the world push you around. Rising oil prices is just a mere ploy, a simple market dynamics of over-speculation. Its not even REAL. So live with it, people, and start thinking of HOW to overcome it instead of letting it control your lives.