Time for fuel prices to come down

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Latest: Pump prices will be reduced by 10-20 sen from Wednesday

Isn’t it about time local fuel prices are lowered in line with global prices? After all, we haven’t seen much improvement in our public transport with all those government subsidies we were supposed to have saved, have we?

With global prices now down to US$80-85/barrel, our policy planners should reduce prices to ease the effect on the lower income group. A 20-sen reduction would be reasonable for now, bearing in mind that global prices could fall to a more realistic range of US$60-80 in view of the likely slump in global demand.

It was a blunder to have raised the price so drastically in the first place, when all the signs were that the recent price uptrend was the result of excessive speculation.

With this, is it too much to expect that prices of other essentials will be brought down?

Says blog reader Joe Rakyat:

How come the prices of staple goods like bread, rice and oil have not gone down yet? Petrol price has already gone down to $84? RM3 for a loaf of wholewheat bread — why so expensive?

If the fuel price goes down, will we see a drop in electricity tariffs? Or would they want to make even more profits?

And what about airlines and budget airlines? Shouldn’t they consider slashing their fuel surcharges? But then again, they may now have now become environmentally conscious and their fuel surcharges are actually their way of trying to discourage the public from air travel (which contributes to global warming)! More likely though, they probably believe that what goes up (including their profits) should rarely come down.

Any savings in fuel costs which are passed on to the public will help to stimulate domestic demand and cushion us a little from the global financial meltdown.

On a related note, the government’s fuel price review mechanism itself needs to be reviewed! The price review was supposed to be done on the first of every month, right?

In the long run, we should serious do more research into renewable energy – and I am thinking of solar – not nuclear – energy.

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desmond
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desmond

Anil, as leader of example they increase the rice price first so they should reduce the price of rice before asking other to do so.

MalaysianCat
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MalaysianCat

It is a chain reaction thing. Not only we need to check on the outlets to get them to lower the prices, it is the middlemen as well as the manufacturers and suppliers that need to lower the prices as well. Same old product but prices have increased so much while the size and portion of it has been severely reduced. Need to clamp down on all parties involved.

Parajurit Sarawak
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Parajurit Sarawak

What the government should do now despite reducing fuel price is to impose price control on all basic household needs. All prices of basic commodities should be monitored and the retail prices are justified base on the supplies and demand. Enforcement authorities are deploy all over Malaysia to take stern action against irresponsible vendors and retailers. With that, I hope the Roti Canai at Mamak Restaurant will revert back to RM0.60.

aaa
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aaa

nuclear sounds more high-brow than solar. and nuclear means more meat, isnt it? why i am so cynical? can you blame me for that when the mimisters and their cronies are trying to take us a for a big fat ride at every contract. look at the helicopter deal? LOI given two days before they swap positions and that at RM1.5 billion more than alternatives. if not for the letter, who would have known … I cant imagine what he is going to do when he sits on the throne. This country (could) be mutilated …big time financially… God save… Read more »

Parajurit Sarawak
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Parajurit Sarawak

Correction, harga minyak semasa USD 85 as per the above simulation.

Parajurit Sarawak
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Parajurit Sarawak

Fuel prices should be lower, Sedar atau tidak, dalam pada semua menunggu pertukaran kerajaan kita sebenarnya telah memberi subsidi secara tak langsung kepada kerajaan Pak Lah dengan membayar harga minyak yang lebih dari sepatutnya. Setakat artikel ini ditulis, harga minyak dunia sudah jatuh ke paras USD 78 setong . Kerajaan :place Malaysia pimpinan Pak Lah yang masih lagi dalam kekalutan politik sekali lagi membelakangkan kepentingan rakyat dengan tidak mengambil apa-apa tindakan yang drastik di atas penurunan harga minyak semasa dunia ini. Janji telah ditabur dan dicanang kepada rakyat bahawa kerajaan akan memberi subsidi hanya 30 sen per liter kepada rakyat… Read more »

Drachen
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Drachen

Remember when some smartie pants was trying to promote Inflasi Sifar? 🙂

giko
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giko

Based upon what Shahrir said = RM1.92 can be achieved if the oil price is USD72/barrel at the exchange rate of 3.43 (or USD65/barrel at 3.80 previously), then at 3.50 exchange rate and oil price at USD80, then it should be RM2.18, not RM2.30!

So are we subsidising the gahmen 10-12sen, instead of the gahmen subsidising us 30sen?

sheeshhhh…

Jeffripower
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Jeffripower

Thanks Allah because of the fuel price to come down tomorrow. This is a good news for us but anyway, we still waiting when that our goods price will be come down. So, tomorrow we have 1 good news and 1 bad news…

Phua Kai Lit
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Phua Kai Lit

Policy-making in Malaysia follows “political logic” and not “economic logic”. Hence the messy state of our economy – enormous waste of the money that comes from our oil exports, self-inflicted round of inflation,etc.

Political logic = to gain political support, to reward supporters
Economic logic = to promote efficiency and productivity

Puzzled
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Puzzled

Well, with these incompetent and corrupted leaders around, the rakyat and the next generation of Bolehland is going to suffer for many many years to come. Even if the petrol price is reduced drastically to RM 1.90 or lower, the inflation rate will stay put. Thanks to the corrupt practices of these ruling elites who have sucked the blood monies from the Rakyat into their own pockets. Never mind, DSAI,forget about changing the guomen. If the people and the BN MPs are still so foolish and still want to support these corrupted leaders, then be it. Let see what is… Read more »

Johnny Cheah
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Johnny Cheah

MUHAMMAD, EASY FOR YOU TO SAY BOYCOTT THEM. EVERYWHERE YOU TURN FOR SERVICES AND FOOD THE PRICES HAVE INCREASED SINCE THE DAY PRIME MINISTER INCREASED THE PUMP PRICE OF PETROL AND DIESEL YOU SHOULD KNOW BETTER. HOW TO BOYCOTT? YOU NAME IT, EVERYTHING HAVE GONE UP IN PRICES. AND NOT BY 5% or 7% MIND YOU BUT AT LEAST 30% to 40%. IT ALL BOILS DOWN TO THIS. THE PRIME MINISTER SHOULD HAVE NOT INCREASED THE PRICE OF PETROL AND DIESEL TO THAT EXTENT. THE PM HAVE DEFINITELY MAKE A VERY WRONG DECISION. DUE TO HIS MISTAKE, THE PUBLIC SUFFERS.

kkitsam
Guest

Petrol price drops, so? it’s not the petrol price that hurts the most, it’s the chain reaction after the drastic increase of which now will never go down. Will we see price reduction in food? What about transportation fees? The petrol price drops really didn’t affect me much if the consumer goods and food is still expensive.

omarkhayyam
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omarkhayyam

oh god ur another guy having fear for da system by having moderation 🙁

bye

omarkhayyam
Guest
omarkhayyam

wats d difference Anil ? @ RM 2.30 i am paying thru ma back orifice like in A body orifice is any external opening in the body of an animal. In a typical mammalian body such as the human body, the body orifices are: The nostrils, for breathing and the associated sense of smell. The eyes, for the sense of sight and crying. The mouth, for eating, breathing, and vocalizations such as speech. The ear canals, for the sense of hearing. The anus, for defecation. The urethra, for urination, and, in males, ejaculation. In females, the vagina, for sexual intercourse,… Read more »

muhammad
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muhammad

fuel pruce has gone down three times, but the price of goods didn’t follow suit. Easy option blame the government, and not those greedy irresponsible, insensitive, blood sucker business man who are quick at increasing price of goods after fuel price gone up, bonuses declared etc.. But very slow when decreasing the price. Guess what, whose fault is that? not government, but consumers.. boycott irresponsible shops, condemn them publicly, show dissappoinment, practise yr cnsmer’s right…

Ganesh
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Ganesh

My weekly groceries bill now in Jaya Jusco supermarket is RM500. That also no meat as I am a vegetarian. My household only got 3 adults and 1 baby. The exorbitant figure includes pampers and baby milk. But before fuel went up, my grocery bill was RM240. So what if fuel goes down? Nothing else will! Despite the fact other things went up due to the rise in fuel, now nothing will come down. This is where the government did not think when they raised fuel suddenly to a high figure. Who suffers the most? Everyone will but the poor… Read more »

mut
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mut

Am not sure prices will come down after the previous hike. Many traders will say it will not come down to absorb the effects of the global economic downturn beginning to make its presence felt. When the fuel prices went up, my reaction was the government has to make sure that other costs of owning a vehicle also reflects world trends, just like the petrol price increase. What means no more APs, exorbitant toll charges, license fees, road tax and so on will go down to a more proper level. Car owners can actually pay more for the petrol due… Read more »

artic turban
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artic turban

We Malaysian have been take for a ride for far too long, before in the 80’s we were paying higher than world prices for petrol when mahathir was in power. This Bn govt has been squeezing us for our money through many mechanisms so that cronies and umno gets rich. examples,all car related tolls, road tax, sales tax, custom duty, oli taxes, all kinds of taxes, when is it going to end, they killed the local public transport companies which were owned by non bumis, all were given to incompetant cronies related to umno, look what has happened, look at… Read more »

MC Leong
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MC Leong

The next morning of the large jump of diesel price months back, my wife’s company’s transport agency faxed an increased transport advice. Since the recent waves of reduced diesel prices, she didn’t hear even a whimper from the transport agency lowering transportation cost.

Hey my favourite roti canai is still at RM1.

And we have a PM who believes when prices go up in Malaysia, it can come down when fuel prices are decreased. He hadn’t studied Malaysia Economics 101 yet.

Joe Rakyat
Guest
Joe Rakyat

Anil, how come the price of staple goods like bread, rice and oil has not gone down yet? Petrol price has already gone down to $84? RM3 for a loaf of wholewheat bread — why so expensive? JR

Klaw
Guest

It’s like the PM reads your blog. Prices just reduced to RM2.30