Key: July prices in red; June prices in violet (Graph courtesy of oilnergy.com)
It looks like the price of oil in Malaysia could be dependent on other factors apart from economic considerations.
Now the PM talks of “streamlining” the oil price from 1 Sept. By also capping the petrol price at the present RM2.70/litre for the rest of the year, the government is now opening up the possibility of a possible reduction in fuel prices this year in the event of a further drop in global prices.
What exactly has changed since 5 June, when the petrol price was raised by 41 per cent?
As you can see from the graph above, the price of Nymex Light Sweet Crude on 4-5 June was around US$125 per barrel. And that was when they raised the petrol price in Malaysia by 41 per cent.
At the end of July, the price was also around US$125. But this time, they are talking of “streamlining” the oil price.
If we look at the average price for the month – for June it was US$134.60 and for July it was $134.42.
So there has been little significant change – from the government’s perspective, that is – to warrant talk of a reduction or a “streamlining” of the price of oil (except that the price has fallen from a peak of US$147 over the last two weeks). Unless the government is now saying it had little justification for raising the oil price in the first place on 5 June.
Abdullah probably couldn’t ignore the oil price issue with the Permatang Pauh by-election looming. The price of oil is likely to be a big issue in the campaign especially with Anwar saying he can reduce it by 50 sen immediately if PR were to wrest power.
So what determines the price of oil – economics, politics… or opinion polls? A Merdeka Centre poll reveals that Abdullah’s approval rating has plunged to a new low (42 per cent) while 59 per cent of Malaysians think that economic problems are the most important issue facing Malaysia today.
That’s hardly surprising. You don’t need a poll to tell you we are in big doo-doo.
[poll id=”10″]
| Please help to support this blog if you can. Read the commenting guidlelines for this blog. |
Hi, Surprisingly with our goverment job. Nice and nonsense joke, I think… Let me start with a fact here… As we all know 1 barrel = 35 gallon. 1 gallon = 4.55 litre. Now,let’s us do some simple mathematic here, 1 gallon of oil = USD125/35 = USD 3.57 1 litre of oil = 3.57/4.55 = USD 0.78 let’s take current exchange rate RM3.3 = USD1 (it’s the highest exchange rate for the past 6months) SO IT SHOULD BE 1 LITRE OIL = USD0.78*3.3 = RM2.59 How the goverment can charge us with RM2.7 when “they” say the GOVERMENT subsidies… Read more »
Grade for BN’s management of the Malaysian economy:
F+
I gets better when Shahrir was lamenting why the price of goods / services etc. will not come down when the ‘oil price will’. And he accuses the whole economy of greed. For one, he should be ‘one of the smarter’ ministers to know that before triggering a huge price hike in all sectors. And who is really greedy, a char keow teow fella who needs to feed his/her family or a corporation given projects in one of the corridors. Shahrir should think before talking.
If PR were to come in power, let them be aware that is (BN gov’s actions) clearly how NOT to run a country. The new government will have to get rid of the ‘hand outs’ and other destructive socialist mentalities afflicting the world today. Make a structured plan to simultaneously improve public transportation, encourage ethical enterprise (read: no government links and makan duit!) and slowly take away the subsidies. This way we get people to fish instead of just giving them fish to eat. The end date of the subsidies and programs have to be set. Or else we are… Read more »
We really need to see our PM quickly step down, he really hasn’t got a glue how to manage the country.
Right now I would put my money on DSAI to get us back on track.
Here’s another example of a racquet in your face first thing in the morning. In ‘second double eclipse this year’, the Star reports:
‘ But like the double eclipses in February, the ones this month do not signify good fortune, according to Dr Chuah Chong Cheng….
” This can be reflected in the general election in March when BN suffered great losses.”
I, too, wish I had such, pardon the pun, astronomical pearls of wisdom.
You have a point there. When the price of petrol is increased in Malaysia the world price of crude oil is hovering around US120+ per barrel. Now because of the by-election BN gov’t is going to reduce petrol price. Admitting their mistakes, its too late.
Petronas said they will make their accounts public…where? And I don’t mean the skeleton summarized info in their web site.
We still don’t know where our oil money is going. Maybe as Umno’s personal piggy bank, Petronas is only accountable to Umno. Ordinary people like us are not entitled to know.
Malaysia must be the only few countries, that the net gain from our resources are not re-invested back into Education, Health and Environment… for our future generations. Instead, large sum of money has disappeared (perhaps) into the wallets of … corrupted politicians. Oil a God sent, is not going to be a life support for Malaysia for a long period of time…even this product has not fully benefited the rakyat. We are really ‘sodomized’ by this corrupted Umno led govt.
Rakyat are welcome if the BeeNd Govt reduce the petrol price!
And the Rakyat are more welcome when the PR throw the BeeNd out of the federal govt imminent!
Of course the issue of fuel price will be featured heavily in Permatang Pauh.
If prices are not reduced before the election, DSAI will harp on it to his full advantage.
If they are reduced before the vote, it would be attributed to the solid stand of DSAI on this issue that the BN government have to back down.
Either way, Anwar wins.
Two reasons: First, they are stupid and cannot differentiate in high or low or in other words, they failed in economics and maths. By all means, he didn’t graduate as a economic student. Two, the PR is getting stronger and it’s time to put some sweet into the rakyat’s mouth which are now wiser than him and those ….. Last time, he and his … said want to cut off the whole subsidies program and let the rakyat to pay the market price and now suddenly become a better person? Why? Because of the person who accused of eating mee… Read more »
no need to think so hard mr pm. Take advice from DSAI on how to reduce petrol price-lah. Take some from here, reduce some from there, give some from here and wa-lah! There you have it, so simple. From one pocket to another. Or should I say, deduct from BN … pockets and you’ll be able to reduce the petrol price. Sheesh…..
A govt that is bankrupt of ideas, will resort to such measures and yes they will lower the prices for DSAI scalp.
Humble pie.
Leaders who use politics to their advantage or gain are not fit to be leaders.
Best cast them away n make them stay away.
We need a new political arena without the old useless, money-grabbers, pro-sodomy-ers, that give our nation a bad name!