Petrol Malaysia

Dear Reader It's been more than 5 years since Mr. Paul Tan wrote his article " How Fuel Prices Are Calculated in Malaysia ". Other blogs have also covered this issue. To recap, the oil automatic pricing mechanism (applied in Malaysia since 1983 ) was based on the following: Cost of Product - Based on Mean of Platts Singapore (MOPS) Alpha petrol - 5 sen / liter diesel - 4 sen / liter Operational Cost Peninsular Malaysia - 9.54 sen / liter Sabah - 8.98 sen / liter Sarawak - 8.13 sen / liter Oil Company Margin petrol - 5 sen / liter diesel - 2.25 sen / liter Petrol Dealer Margin petrol - 12.19 sen / liter diesel - 7 sen / liter Sales Tax / Fuel Subsidy petrol - 58.62 sen / liter diesel - 19.64 sen / liter subsidy if price higher than retail price tax if price lower than retail price As we can see, the subsidies are quite substantial compared with the alpha, the margins and the operational costs. PerakToday noted that MOPS is based...

Dear Reader The retail price of RON95 and diesel will be based on a managed float from now on. Here is the press statement for the announcement, which I received from a friend: KENYATAAN AKHBAR PELAKSANAAN PENGAPUNGAN TERKAWAL (MANAGE FLOAT) BAGI PETROL RON95 DAN DIESEL Dimaklumkan bahawa Kerajaan melalui Mesyuarat Jemaah Menteri hari ini telah memutuskan bermula dari 1 Disember 2014, penetapan harga runcit bagi petrol RON95 dan diesel adalah mengikut kaedah pengapungan terkawal (managed float). Kaedah ini adalah sebagaimana pelaksanaan penetapan harga runcit RON97 sedia ada sejak Julai 2010. Harga runcit produk petroleum di Malaysia ditentukan melalui kaedah Automatic Price Mechanism (APM) sejak tahun 1983. Melalui APM, Kerajaan akan menetapkan harga runcit pada satu paras tertentu dimana perubahan kos produk tidak akan mengubah harga runcit. Walau bagaimanapun, melalui pengapungan terkawal (managed float) ini, purata perubahan kos produk akan menentukan penetapan harga bag...