Petrol Malaysia

According to Bloomberg, crude oil prices fell again today to below USD$35 per barrel. The reason: Forecasts by industry insiders that global recession will lead to cuts in petrol consumption. The analysts are, however, positive that the second half of the year will see the price of crude oil bouncing up again. The fall in crude oil prices is despite a production cut by OPEC. An industry insider with Nordea Bank AB in Oslo stated it simply: "Demand is falling faster than oil producers are cutting production. As long as OPEC are one step behind, prices will continue to fall." [Source: Bloomberg.com, 19th January 2009. Crude Falls on Forecasts Global Recession Will Cut Fuel Demand ] OPEC produces about 40% of the world's supply of crude oil. [Source: The Edge Daily, 31st December 2008. 31-12-2008: O&G sector to lose a bit of fluidity in 2009 ] What would a bearish outlook for the O&G sector mean? Mergers may take place as companies consolidate their resources to face...

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...