Rising oil price, Malaysia: ways to suck it up and live with it

Admit it, oil price will never go down. Don't care if it's the petrol you pump at the petrol station or even cooking palm oil. Rise in the 1st causes rise in the second, a whole lot of other consumer items.

I do think the readjustment of the petrol price necessary. For once, there is limited amount of decomposed dinosaur remains that you can suck out from the middle of the earth. After all, they have been extinct for some hundreds thousand years ago.

To be honest, I do agree with the government moves to raise the price of petrol and give out subsidy in the form of cash instead. It's fairer to the population in the sense that those driving a Beemer will get the same amount of subsidy as those who doesn't (provided the Beemer is <2000cc). Indirectly, it encourages ppl to save petrol. When they burn less petrol, less CO2 is released to atmosphere = slower greenhouse effect. Better future for our grandchildren =)

But some ppl still stuck with using car. Myself, for example still need to drive baby Alia chan to babysitter then to office then back home. I could try to use the public transport, however it's not really is a viable option.

For those who still need to drive, what are their option to save on petrol? The answer: Petrol credit card + loyalty card. In order to make a comparison, we'll need to look at these criteria: Rebate amount & Annual fee waiver. For simplicity, I will just review the top 3 combo. Take my spending for example, I spent RM320 per month on petrol RM80/week average.

3) Citibank Shell Card + BonusLink
Rebate: For classic ct card, rebates are 1.5% for fuel purchases (3% if carry forward balance >RM2k). 0.5% for other purchases (1% if balances >RM2k).
Annual Fee: RM90 (1st year waived).
In order to get most buck from the card, you should ask for a fee waiver.
Saving: Saving on rebates is RM4.80 (1.5% x RM320). Min redemption is RM20 so it will be 5 month before I can redeem it.
I fill up 118 litre of petrol per month so I will get 118 BonusLink point. 980 will get me a RM10 Parkson voucher so I should be able to redeem it in 9 months.
Therefore, TOTAL saving = RM5.96 monthly (roughly) if you add up the savings from rebates and Bonuslink points.

2) CIMB Petronas Mastercard
Rebate: 2% of fuel or any item at Mesra outlets. RM50 max rebate per card per month.
Annual Fee: Free for life.
Saving: RM6 per month.
Btw, you can't get points from Kad Mesra if you use the card.

1) UOB One Card (Visa)
Rebate: 2% for petrols, up to RM70 per receipt. RM400 max transacted amount per month. Effectively your max rebate is 2% x 400 x 2 cards (Visa and Mastercard) = RM16 a month.
Annual Fee: RM68 (It's waived if cardholder uses it at least 6x a year. Cardholder also get a UOB MasterCard that they need to use 6x a year).
I don't think you'll have problem swiping your cards, you'll have problem not to..
Saving: RM5.6 per month. I fill up RM80 worth of fuel, 4x a month. Rebates will only count up to 2% x RM70.
I will also get 320 e-point per month. I can get RM5 worth of fuel with 550 e-point which I can accumulate in 2 months, therefore saving RM2.50 a month.
Therefore, TOTAL saving = RM8.10 per month making it a winner combo! You could probably earn more if you limit your refuel to RM70 each refill.

There you have it. I have always been a pro-swiper, despite my wife disapproval. However I always believe in prudent spending and only spending what you can afford.

Remember, credit cards are not money in your hand. It only facilitate that money to be at the tip of your hand. Adios!

-Asa-