Petrol Prices (info)

Most of you know about the petrol prices increase. But do you know the following: (from Paul Tan)

- The actual price at the pump for RON97 petrol is RM2.704

- Diesel price is also not RM2.58 per liter, but RM2.581 per liter.

- The new price of RM2.70 includes a 30 sen government subsidy, so it is reduced from what the Prime Minister says is a market price of RM3.00 per liter. The 30 sen subsidy will be a fixed amount of subsidy that will subsidise the market rate.

- The market rate will be reviewed every month. This means (if) the market rate is RM4.50 per liter next month, we will be paying RM4.20 per liter for fuel, and if it is RM7.00 per liter, we will be paying RM6.70 per liter.

Shit. We die. Petronas laugh at their earnings.

- Basically for the first 800 liters of fuel used per year, you’ll still be paying the old price of RM1.92 per liter. 66 liters per month is the equivalent of nearly 2 full tanks for a small compact car, or just over 1 full tank for a typical sedan.

I've calculated, I'll be paying an extra RM 837.56 per month, after the rebate. The calculations is as follows:

Avg 1 month usage (old price) - RM 300.00 / 130 Liters
Avg 1 month usage (new price) - RM 421.88

1 month Avg difference - RM 121.88
1 month rebate RM 625 - RM 52.08
1 month I spend extra - RM 69.80

1 year I spend extra - RM 837.56

- The government will be moving towards abolishment of the fuel subsidy in the future, so we’d better just get used to these new prices. There is already a hint in the Prime Minister Office’s announcement which states that the cash subsidy will be for vehicles with road tax expiring between the 1st of April 2008 until the 31st of March 2009. What happens after that?

After that no subsidy lor... then Petronas make more money lor...

"Petronas reports to just one man, the Prime Minister of Malaysia." from Raja Petra.

From Mahatir's blog:

"Roughly Malaysia produces 650,000 barrels of crude per day. We consume 400,000 barrels leaving 250,000 barrels to be exported."

Three years ago the selling price of crude was about USD30 per barrel. Today it is USD130 – an increase of USD100. There is hardly any increase in the production cost so that the extra USD100 can be considered as pure profit.

Our 250,000 barrels of export should earn us 250,000 x 100 x 365 x 3 = RM27,375,000,000 (twenty seven billion Ringgit).

But Petronas made a profit of well over RM70 billion, all of which belong to the Government.

By all accounts the Government is flushed with money.

Where is the money going to? Since "Malaysia is a net oil exporter and earns 250 million ringgit a year in revenue for every $1 rise in crude prices."

Malaysia Today reports that:

"Dalam wawancara Buletin TV3 (8.00 malam 4/6/2008) Dato’ Shahrir Samad memberitahu tujuan sebenar mengurangkan subsidi minyak ini adalah untuk menampung kos pembangunan Negara"

This is quoted by the same guy who said this:

MELAKA, May 24 (Bernama) -- The government has no plans to increase fuel price despite the price hike of petrol by 30 per cent in Indonesia beginning Saturday, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said.

There could be 2 possible scenarios:

1. The government plans on a weekly basis. They came together for their weekly meeting, and after countless coffee breaks, they came up with the weekly plan; to increase petrol prices.

2. Badawi did not consult the government. That's why Shahrir didn't know about it. After all, Petronas reports only to the PM what!

Either way, we're screwed.