There are generally two types of price increases. The first is by taking up the price of the product. Another common way is to reduce pack sizes or quality while keeping the selling prices the same.

Today, the government adopted the latter approach when hiking up the price of petrol. Read the whole article here. The petrol that I have been pumping at RM1.80 per litre has been upgraded to premium and is now priced at RM2.05 per litre. A lower grade petrol is now priced at RM1.80.

Today, when I arrive at the petrol station, the pump was still showing RM1.80 per litre. The receipt showed I have bought the lower quality petrol. However, I don’t quit feel the pain in my wallet. What a smart way to deceive the consumers.