What should the petrol price be?

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Okay, you tell me what the local petrol price should be now, bearing in mind that they have removed subsidies completely now.

Of course, we also need to factor in the need to conserve scarce fossil fuels.

I think RM1.80 without any subsidy would be a more acceptable price now, taking into account the need to bring down food prices and stimulate the local economy while trying to encourage fossil fuel oil conservation and prevent wastage at the same time.

Thanks to Ong Eu Soon for compiling this chart:


Petrol price Global crude

RM/litre US$/barrel
01/10/00 1.20 35
20/10/01 1.30 20
01/05/02 1.32 26
31/10/02 1.33 28
01/03/03 1.35 31
01/05/04 1.37 38
01/10/04 1.42 47
05/05/05 1.52 48
30/07/05 1.62 57
26/02/06 1.92 63
05/06/08 2.70 120
17/11/08 2.00 55

But then they have gone and based the country’s national budget on a much higher oil price, with a higher budget deficit projected! They really have to come up with a new budget now.

Says blog reader tan, tanjong bunga:

The recent budget is out-of-sync with the current oil price of US$55-56 per barrel.

If the govt does not review its budget based on current situations, we can expect the govt to maintain the price of petrol at RM1.92 to RM2. The extra RM billions obtained from no subsidy plus sales profit from petrol would offset to a certain extent the shortfall from its projected revenue from the oil industry. In doing so, the govt is actually imposing an oil tax on the consumers! This is in effect adding insult to injury of no 30 cents subsidy!

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mtsen

old price was subsidized, price now is not. that explains the difference. no big deal here …

GarryKhoo

Public transport need to be improve but security of the area also must be consider. How good the transportation provided but if the consumer feel not safe to travel around also will not solve the problem.

vj

What about electric tariff? It should go down too right?

kenneth iswara

it was stupid of badawi 2 raise petrol price hastily by 40% – now price of things will not come down – we must thank tidurwi 4 that shahrir – i have no more respect 4 u – u have lost yr principles; now u r just another of their ministers – no more fighting 4 d people, only 4 umno i can c d difference between u n zaid now – where is d shahrir who resigned from PAC on a matter of principle? u should be fighting 4 a ceiling price not 4 a floor price-if u r… Read more »

James Bon

If the government all these years had been sincere to the public without hanky panky or imposing OSA whatsoever in their decision making where everything was opened up under broad daylight for public scrutiny, we wouldn’t be here today arguing what is the fair value for the fuel price. Seems like now the government is getting very careful and confuse instead in disclosing the fair value for the fuel price and fuel subsidies as there were simply too many hanky panky and hidden hands behind the scene manipulating the figure and now everyone is confuse what is the fair value;… Read more »

Ikeda

the exchange rate is RM3.8 to US$1. Now the rate is RM3.4. Therefore the actual price should be lower than the price on the chart

rl

have you considered movements in MYR/USD also?

what the ...

Did anyone mention RM625 cash rebate? looks like everyone forget it.

PP

where the hack is our 30 sen subsidy??????
I’m wondering..pakatan can sue the white haired Dato…. he made public on 30 sen stuff… and now he broke the promise…he already broken the law as when he made public, contract had been established ( remember read it somewhere about law stuff)…. so, DAP, PKR, Pas…..u know what to do….got so many lawyer there….

TS

We have the most “creative” politician in the world! They know how to “use” those money. So no worry. Besides, this is the last chance for them to get as much as possible before the next GE. So don’t blame them not able to lower down the patrol price. After that you will see all of them migrate to oversea and having banglo in various countries. Malaysia Boleh!!

The Whisperer

Looks like when they mentioned about a maximum of 30 sen per litre subsidy for the rakyat, they actually meant to charge us a max of 30sen premium.

Some brainless idiots that I have come across told me it is ok as the government need the funds for development. How ignorant!!

tom

Now, it is our turn to subsidise Petronas. Otherwise, no bonuses for their employees and hanger-ons.

Alfred Kok TL

The Pump price should fluctuate with the fossil oil price, that’s what the Prime Minister decreed. So let it be. The political King’s word is the Law. Cheaper pump price can prevent Malaysia from the possible 2009-2010 economy slow-down, becoz the People can afford to be mobile and active. This will spur production, growth and pro-activity. The Government’s coffer shall be fattened by corporate and personal income tax and all sorts of expenditure taxes. Deny the troops water and the war is lost. Offer the troop too much beer and the war is also lost. To win the war give… Read more »

chong

malaysians continue to be sodomising by BN government upside down and inside out…

pathfinder

I ain’t no idiot like the proponents of fuel tax. I just can’t imagine there are such idiots around. Its like a “Ah Too” or “Ah Beng” talking. Anyway who the … give that white haired Dato … to just decide that we should all pay market price and then suddenly now he decided again that we should all pay fuel tax.
Both are equal idiots except that one is more idiots than the other.

Lawrence

why we must follow world market price when we are producer and exporter and NOT NETT IMPORTER!

we are NOT even member of OPEC!

Ong Eu Soon

Wrong! Anil. Wrong! The government do not need to come out with new budget. When the world crude oil price go down, Petronas actually make more moneis. Remember Jeffery Kitigan’s revelation about our oil selling to 6 option holders. The price should be about $70 per barrel. They are making huge profit, yet treat us like a fool by making us pay more when the price of petrol should be RM1.60 per liter.

aaa

kensthoth what does the govt want? come clean and tell the public whats the indiret tax that is being levied. sure, i dont disagree with you on the merits of a petrol tax to encourage public transportation. but is the govt policy consistent with that? for one, there is lack of focus in improving the public transportation. its main solution to resolve traffic jas is to build more tll roads so as to enrich ts cronies. two, why try to develop the car industry by encouraging ownership? why give tax incentives for national cars ( ie. minis to make it… Read more »

Netizen

I don’t mind paying 1.90 per liter, but only if that extra money is going to fund public transport. It seems fair to pay a sort of tax for clogging up the roads and polluting the air with our cars, but only if that tax is going toward improving public transport so that we have the option of not using our cars and not paying this tax. I don’t want this extra money going toward anything else, because it’s not going to be spent wisely and it’s most likely going into someone else’s pocket. Why should we prop up their… Read more »

Ganesh

If the government based its Budget on the previous high price of oil, then, it is Negligent. Only this word can describe the whole situation. Oil is a commodity, which goes up and down, like a Yo-yo. The Government should not take such a risk to come up with a Budget based on high oil prices. Sheer utter negligence. It does not take a clever person to know that it was such a high risk to assume oil would always be above US$100 per barrel. The government should have forsight since it has briiliant brains formulating the Budget. Now, we… Read more »

Deathlings

Hi, just to clarify on how effective petrol price is computed Crude oil is not a valid comparison as it doesnt account for refining cost. Please use the global RON 97 per barrel (159 litres) price that is available on bloomberg with ticker MOGFC97S Index, which currently is at USD 48.95 (USD 1 = RM 3.6 now). So effective cost of 1 litre of petrol is: 48.95 * 3.6 / 159 + 0.12 (dealers margin) + 0.15 (oil company’s distribution cost and margin)+0.05 (gov’s goodwill to dealers to compensate losses on price drop) = RM 1.43 Total consumption in the… Read more »

bgees

This is a systematic corruptions and blood sucking from the goverment. It should be around 1.4, it’s clear cut the gov is robbing the people …

luking...

then,when the price of petrol went up to 2.70,tis aab and white hair guy promises us that the govnment will at all time subsidice us .30cts per liter.but now crude oil has come down so much and they have now turned back on their word,and worst still they intended to put a base ceiling price and they ask us to subsidice the govnt instead.This … liers!!!Wait for the next GE!!

Oil sheikh

Dear Sir,

Anybody who goes to petrol stations esp. Shell would notice that there is a big billboard (still up there!) showing the rationale of the pump price hike of 26/02/06 from RM 1.62 to RM 1.92!

It was displayed that at pump price of RM 1.92 the govt was subsidising RM 1.01!

Which figure is a big LIE??? present or past???

Vijay Kumar Murugavell

Yes , we are certainly paying more for petrol- not in tandem with plumetting global oil prices. The earlier 30 sen promised subsidy is abandoned and just when we thought we could gain if oil prices plummet further, Sharir Samad is insultingly mulling “floor prices”. Sharir is also reported to have said that if drastic cuts are made suddenly petrul stations and dealers will suffer, on the otherhand it was OK for them to reap bumper profits when they increased prices overnight. baffling ? not really- allow me to share my simple minded theory:- Who are these petrol station owners… Read more »