Sunday, June 1, 2008

Don't waste fuel...

Do you know that the Government spent B$202 million last year on fuel subsidy? Do you know what the Government could have spent the money on, if it was not used to subsidise fuel?

Lets take a look at how subsidy works. The price of one litre of Premium 97 fuel at the petrol station is B$0.53. The cost of producing one litre of Premium 97 is 53% more than its retail price. Similarly, the price of one litre of diesel is a mere B$0.31, while it costs 72% more to produce it. And there are over 100,000 vehicles in Brunei at the moment and add to that the large number of foreign-registered vehicles that ply the Brunei roads. Do your arithmetic and please start to appreciate the benefit of living in Brunei.

In the nearest neighbouring country, the cost of one litre of Premium petrol is B$0.86 and diesel is B$0.72.

So what should we do to help lessen the burden on the Government? For a start, we should perhaps drive less. We could car pool to work for instance. Instead of using motor power, perhaps we could use pedal power. And pedalling to work can be a good exercise too.

Practice good driving habits and avoid driving aggresively. We could reduce fuel consumption by following these tips:
  • When you're driving on highways, stick to the speed limit. As well as being a safer speed, slowing by 10mph saves B$0.70 on fuel for every 10 miles.
  • Switch off your air con and open your air vents. Air conditioning increases fuel consumption.
  • Avoid sharp braking and accelerating. You'll save as much as 30% on fuel costs.
  • If your car has a 'cruise control' setting, use it on long journeys. It'll help you save on fuel.
  • Make sure your tyres are pumped up to the correct level. Driving with soft tyres can add up to 2% to your fuel bills.
  • Consider a car's fuel economy before you buy.
  • When your air filters get dirty they can seriously reduce your fuel economy. Remove them as soon as they get dirty. They're inexpensive and easy to change if you have your car's handbook. Or just take your car to a workshop.
Because of the relatively cheaper fuel here, there have been many cases of fuel smuggling into neighbouring countries. Most people would modify the car tanks, making them larger, so that they can bring more fuel out. However, there was this case recently where the authority found that this smuggler had laid a 7-km pipe to move the fuel across the border. It was a pretty dangerous thing to do. The pipe could have caught fire or the pipe could leak, thus polluting the environment.

I am not being xenophobic, but when the fuel are smuggled out of the country, the subsidy would actually benefit people over the border. The Petroleum Unit introduced some fuel purchasing restrictions to foreign-registered vehicles. These vehicles are only allowed to purchase B$10-worth of Premium 97 or B$6-worth of diesel. But the Government still have to pay for the subsidy.

Perhaps, the Government should follow what the Malaysian Government is introducing soon; selling fuel at non-subsidised price to foreign-registered vehicles. Read here for more info.

So should the government reduce the subsidy and make us pay more for the fuel? Apparent--ly not, if you read this.

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