Petrol Malaysia

The first article Today I was referred an article at Sinar Harian, " Perang Harga Minyak Bermula! ". Translated into English, it means, "The Oil Price Wars Begin!" And in that article there is a tantalizing line: "...setiap stesen minyak akan berlumba-lumba menawarkan harga bahan api yang istimewa bagi menggoda pengguna untuk mengisi petrol atau diesel di stesen mereka." Translated into English, it means, "... every petrol station will race to offer special prices for petrol to seduce consumers to fill in petrol or diesel at their station." That seems to imply that different petrol stations will have different petrol prices!

The price of RON95 is now RM1.95 and RON97 is now RM2.25. This price is cheaper than prices in October 2014, when the present pricing mechanism was imposed. The nice table you see above is from the Facebook page of Sinchew Daily newspaper. (Thanks, guys! I couldn't have done it better myself....) It's a frequent complaint of Malaysians whenever the price of petrol goes up. "What! Oil now up to $xxxx (insert figure here) per barrel! Soon our petrol will go up again. Soon everything will go up again...." And it is an accepted fact of life -- petrol prices will go up every so often, causing everything to go up. Coffee, food, clothes, services, etc. Everything goes up with the petrol. However, due to the current petrol war between Saudi and USA, excess oil production has driven oil prices down. Some articles say that it's to drive the USA out of the oil business. Reason? Saudi has lower breakeven point for each barrel produced (after the initial cost of d...

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...

December has come. And the good news is that petrol prices have fallen once again. At the petrol pumps, RON 92 and diesel are now priced at RM1.80 per litre. RON 97 is now priced at RM1.90 per litre. This however is still higher than the global price of petrol, which is about RM1.60 per litre. [Source: New Straits Times, 3rd Dec. 2008, 6th Reduction in Petrol Price ] The Government is considering either implementing a "managed float or floor price". The present reduction of 10 sen, as opposed to 15 sen, was necessary to ensure that petrol vendors could make a profit of 2 sen per litre. [Source: New Straits Times, 4th Dec. 2008,  Lower Prices: Should We Float Or Fix Minimum Fuel Prices? ] Prime Minister YAB Abdullah Ahmad Badawi was quoted by Bernama stating: "If oil price continue to slide drastically, our revenue will be affected as the percentage of income from oil is high. If our revenue dwindles, it will lead to other problems." [Source: Bernama, 2nd Dec. 2008,...

Dear Reader, Thank you for dropping by PetrolMalaysia.com, again. As usual, we will cover a run-down of recent events pertaining to petrol, in Malaysia. The price of petrol has slipped in recent weeks. On the 17th of November, the Government of Malaysia announced that the price petrol has now dropped 15 sen per litre. Accordingly, the prices of petrol in Malaysia are now: RM2.00 per litre forRON 97; RM1.90 per litre for RON 92; and RM1.90 per litre for diesel. (Source: New Straits Times Online, 17 Nov. 2008, Fuel Prices Drop By 15 Sen Per Litre ) The Government has stopped subsidising petrol price at petrol stations. (Source: New Straits Times Online, 20 Nov. 2008, Another Fuel Price Cut? Gov't To Decide Next Month, says Shahrir ) This removal of price subsidy at the petrol pump is probably a good idea for now, as it will save the Government some money. The current price of petrol is not burdensome on the rakyat . However, when prices of petrol shoot up again, will the Governmen...

The price of petrol has been reduced by 15 sen. To be exact, the Malaysian Government has, effective 23rd of August 2008, lowered the price of petrol by the following amounts: RON97 petrol is now RM2.55 per litre (15 sen reduction) RON92 petrol is now RM2.40 per litre (22 sen reduction) Diesel is now RM2.50 per litre (8 sen reduction) The front page headliner from The Star newspaper on 23rd August 2008 entitled "15 Sen Down", quoted Prime Minister Datuk Seri Abdullah Ahmad Badawi saying that the move was to help ease the people's burden. On page 4 of the same newspaper, PM Abdullah Badawi is quoted saying that the implementation of the "floating" price mechanism was brought forward after Cabinet considered the drop in oil prices in recent weeks and the increased inflation rate in July. (Article headline in newspaper: "Cut Comes 10 Days Early". However, the online version is entitled "Government Decides To Bring Forward Floating Price Mechani...

An AFP report quotes Prime Minister Abdullah Badawi saying on 2nd August 2008 that Malaysia will, commencing September 2008, "introduce a new system linking domestic fuel prices to the global market, but will cap prices at their current levels". This is in keeping with the falling cost of petrol. Global petrol prices peaked at USD140 per barrel but have since fallen. (To be sure, OPEC records that the world price of petrol stood at USD140.73 on 3rd July 2008 and is presently USD114.64 per barrel as of 6th of August 2008. This figure is debateable because OPEC calculates the price of petrol based on a basket of prices. The AFP report, in fact, states that the prices of petrol hit a high of USD147/= in July 2008.) To summarize, Prime Minister Abdullah Badawi stated: Petrol prices would continue to be subsidised at the rate of RM0.30 per litre The price of petrol would be fixed on the 1st day of each month based on the monthly average This price would not exceed the prese...