I Introduction
The main causes of furnish equipment casualty hikes is the government need to reduce the subsidies. The increase in damage of evoke will own some effects to the consumer such(prenominal) as it will occurs an inflation, decreasing in production of cars, natural depression examples of living.
II body paragraph
Causes
The price of fuel will pay off up from now as part of the Najib administrations on going drive to reduce subsidies. They are doing this to reserve sure that our shortfall is reduced.
a)The government expects to save subsidy payments. ( Adwira,2010)
b)This is the twinkling wave of subsidy cuts fol depleteding the first round of hikes on July 16 2010. ( Adwira,2010)
c)According to Datuk Seri Idris Jala we are doing this to make sure that our deficit is reduced.
Effect 1
Firstly, the effect of increasing in fuel price will occurs an inflation.
a)Although the Government indicated that inflation might set up to 4% to 5% this year, the real inflation effect could be considerably larger. (Yeow Pooi Ling,2008)
b)Demand is much to a greater extent than the supply.
c)The price of intellectual nourishment will increase as a direct settlement of the price hike.
Effect 2
Secondly, purchases of car will fall.
a)Consumer will give more priority to public transportation.
b)source of national income falls.
c) car prices and taxes never drop down.
Effect 3
Lastly, the impact of rising petroleum prices cause the people have a lower standard of living
a)This significant increase has severely affected the motorists particularly from the low and middle class society
b)people will be more water-wise
c)low income people will bear the greater burden.
tether conclusion
In conclusion, low standards of living, decreasing in production of cars and increasing of inflation rate are the few effects of fuel price hikes. All these effects are occursIf you want to line a full essay, order it on our website: Orderessay
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