Oil prices up again, hurting your wallet? Reasons behind the surge, govt price stabilisation, and money-saving tips

Riding to pump petrol this week, seeing the price for 95 unleaded nearly made me fall off my bike. Prices just went up last month, so why another hike of over a dollar now? The auntie at the station casually inserted the nozzle without looking back and said, "Bro, there's a war in the Middle East. This is just the beginning."

She's right. This oil price surge is basically because that pressure cooker in the Middle East is about to boil over. The conflict between Israel and Hamas drags on, putting major oil-producing nations nearby on edge. Any hiccup in supply, and global oil prices shoot up like a rocket. Taiwan relies on imports for over 90% of its energy, so naturally, our petrol tanks are the first to feel the heat.

Government Intervention: Activating the Price Stabilisation Mechanism

Speaking of this, the older generation might shake their heads and say, "You should've seen the crazy oil hikes in the past." True, at least now the government has a price stabilisation mechanism for oil and electricity in place. This time, CPC Corporation, Taiwan took the lead, absorbing part of the increase through its stabilisation measures. Otherwise, the prices we see would be way scarier. It's pretty clear this isn't just pure generosity; it's about preventing a chain reaction of price hikes across the board. When oil prices go up, everything follows – your bento, hawker food, online shopping delivery fees – nothing escapes.

What's a bit more reassuring is that besides petrol, there's some clarity on electricity prices, which everyone's been dreading. Initially, everyone expected electricity tariffs to be adjusted upwards on April 1st. But the latest indication is a temporary price freeze on electricity for April. It might only be temporary, but at least this spring we don't have to worry about the aircon not even being on yet, while the electricity bill goes through the roof. However, how long this "freeze-for-favourability" tactic can last is anyone's guess. Ultimately, it depends on when that ticking time bomb in the Middle East gets defused.

Survival Guide for the Everyday Person: How to cope with this wave of increases?

Since we can't control global geopolitics, and government mechanisms seem more like "painkillers" than "cures," what can we ordinary folks do? I've rounded up a few tips from seasoned "fuel-saving experts" I know. Hopefully, they can help ease the strain on your wallet:

• Look after your tyres, save your fuel. When tyre pressure is low, the friction with the road increases, making the engine work harder – that's how fuel gets silently guzzled. Check tyre pressure at least once a month. Top up the air when you send your car for servicing – it costs almost nothing.
• Reduce idling. Switch off the engine. Many taxi uncles are used to leaving the engine running while waiting for passengers. But modern engines aren't that fragile. For stops longer than a minute, switching off definitely saves more fuel than idling. Waiting for your girlfriend or buying a bubble tea? If it's more than three minutes, just switch it off.
• Make full use of fuel discount apps. Many bank credit cards and mobile payment apps these days offer petrol discounts. It might only be a few cents per litre, but every little bit adds up. Over a year, it could pay for several meals. Make it a habit to check your phone before pumping, and scan your receipt e-invoice voucher after – just incorporate it into your routine.
• Walk more when you can. For short trips like buying soy sauce from the neighbourhood shop or taking out the rubbish, consider walking or hopping on a shared bike. No need to hunt for parking, and you get some steps in for your health – killing two birds with one stone.

At the end of the day, this tough period of high oil prices probably won't end in just a month or two. As long as the Middle East conflict continues, it's hard to see oil prices truly softening. What we can do is watch our own wallets closely and make every single drop of fuel count. As for the government's price stabilisation mechanism, think of it as a little umbrella in a storm. It's great if it holds up, but if it doesn't, we've got our own money-saving tactics to fall back on.