One of the most talked about announcements from Budget 2021 delivered by DPM Heng on Tues was the hike in petrol duties. Most drivers are concerned with how much this could push up costs of driving. True, drivers would be impacted but the effect may be varied. If you drive for lifestyle rather than for your livelihood, this increase may be negligible compared to the price of the car, its annual depreciation and where most season parking fees are in that range or more. And thankfully, taxis, private hirer drivers and motorcyclists (who make a bulk of food deliverers) who use their vehicles for work will get rebates. But the greater impact is the consequent decrease in vehicular emissions catalysed by this move. Drivers who feel the pinch may drive less if they have strong public transport options. When DPM Heng said: “Usage-based tax has helped shape consumer behaviour towards a more efficient use of fuel or environmentally friendly alternatives,” I wondered if the petrol tax hike was an application of the nudge theory, an idea grounded in behavioural science.... Continue Reading