A study on the impact on the increase of fuel prices towards household expenditure on petrol consumption for private vehicle usage / Lucy Samuel

The purpose of this study is to find out on the impact on the increase of fuel prices towards households' expenditure on petrol consumption for private vehicle usage namely, before and after, the rising of fuel prices. It is widely accepted that fuel prices tend to lower the purchasing power of households. The households' expenditure will also be affected which will then caused them to have little choice and bear the higher prices of food, fuel and services. The study showed that the reaction of consumers towards the increase of fuel prices, the majority of the respondents felt the impact which is a burden to the lower income group. The people who used to spend more on entertainment will have to cut down on their entertainment budget. The study also found that the price of fuel is increasing, consumers primary option are to use own car or car pooling to work. Public transport is still the second choice among respondents who participated in the research. This is because, people who own a car will try to cut down expenses to save more on fuel expenses. Through the recommendation by the respondents, it was suggested that the public transportation services both in urban and rural areas should be looked into seriously and need urgent attention. People who owned a car will surely consider to use public transport once the services of public transportation in our city, particularly in Sabah has been improved. It is very significant when now consumer have to spend RM30 as opposed to RM20 for the same amount of car fuel everyday.