Sunday 25 December 2011

Soon in Jakarta, car users will only be allowed to buy 5 liters of petrol at the subsidised prices. What effect do you think it will cause?

Soon in Jakarta, car users will only be allowed to buy 5 liters of petrol at the subsidized prices. What effect do you think it will cause?
I think this will cause a huge effect for many sides. People will only buy max 5 liters because if they buy more than 5 liters, the price will be higher and they have to pay more. This will make people think twice before going out by cars because they want to save the petrol. Also, there will be less traffic on the streets because people will likely to stay at home. Malls will possibly not be as crowded as usual. People will certainly choose to ride motorcycles than drive cars. Not surprisingly, the price of motorcycles will be higher because of that. The price of cars might be lower and not as expensive as usual. Most people will be likely to go outside by public transportation such as, busses and trains, because the fare is cheaper. I hope this will encourage the local government to build more stations, terminals, bus stops, etc and make public transportation more comfortable. Maybe they can add air conditioners, sofas, and make them cleaner and safer so that people will not be worried or afraid of being in public transportation. The government can also clean the pavements of sidewalk sellers, and repair all the damage and leaks on the streets, so people can save their money by walking on the pavement or cycling to go to work but I think it’s unlikely to happen in the mean time, because it’s not safe for pedestrians to walk on the streets because crimes are everywhere and pedestrians might have accidents on the streets.
Back to the petrol case, the most dangerous effect is there will be a black market. People who have many cars will fill all their cars with 5 liters petrol and then sell it illegally with a lower price and the country will suffer losses. The government should anticipate it, because there will definitely be a demonstration of people who disagree about that policy, especially poor people. However, I’m still hoping that those cases will soon be overcome by Indonesian government.

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