Pain will return when oil prices increase
YOURSAY ‘How is gov't going to meet its budget commitments?’
Petrol pump prices go down, diesel increases
CiViC: There is no need to compare current crude oil prices and what it means to petrol/diesel prices, but instead just compare before and after subsidy.
If the government was indeed subsidising 74 cents per litre before this - during times when crude oil prices were up - by the same calculation on the proposed price of RM2.26 without subsidy, that would add up to RM3.00 per litre, but it was never RM3.00 before, which means that the 74 cents subsidy was either over-declared, or the price before subsidy was never accurate.
Either way, this reveals the government's tactic in manipulating petrol/diesel prices to their advantage at the expense of the people.
Anti-Sarkis: It’s very stupid of people to think that if world crude prices go down 30 percent, then petrol prices must also go down 30 percent. There were subsidies before this.
Then there is also fixed cost like refining cost, distribution cost, marketing cost, selling cost, insurance cost, and retailing cost.
Anonymous #78379017: The oil price had slid in the past months but still the government increased the pump price by 20 sen per litre last month.
Then knowing the actual price was much lower, they allowed a "manage float" and just reduced by 4 sen. In actual fact, consumers still overpay by 16 sen per litre.
Worse still, diesel goes up by 3 sen, making it a total increase of 23 sen. Nearly all transportation vehicles used diesel. This will definitely inflate prices of goods as they depend on transportion.
Pputeh: Both RON95 and RON97 prices reduced, but diesel is up. Don't they all come from crude oil, or does diesel come from coconut/palm oil?
Caripasal: The international price of raw RON95 is about RM1.55 per liter (based on Brent of US$72 per barrel).
The government and petrol producer/operator marked up the petrol price by RM0.70 per liter, a massive 45 percent of the raw RON95.
The government is trying to rob the people by charging ridiculously high refining/operatimg cost to compensate for the loss of crude oil revenue.
Given that a large majority of those using RON95 is from the low income group, the government is therefore robbing the poor instead.
I’m however extremely happy to see the falling oil price. With the Brent expected to fall below US$50 per barrel and stay low for many years to come, a corrupt and debt-ridden government will soon go bankrupt.
We shall see who is the fool and has the last laugh.
Worthy: According to CNN, Opec (operation cost US$40 per barrel) is doing price war to paralyse United States which refines shale oil at U$70 per barrel.
Saudi Arabia has asked for six months period to kill off US’ shale oil supply that breaks Middle East's brutal monopoly control on oil price.
Don't be happy, all petrol consumers are going to have a hard time in six months after the Middle Ease-US price war.
ABS: I have yet to see a definitive statement from the government that says subsidy of RON95 has been removed.
Setting the price on a floating average, or whatever it is called, does not necessarily mean subsidies have been removed.
It may only affect the 'starting price' of the APM (administered pricing mechanism). I wish this can be confirmed one way or the other.
Teruna Hot: The government is prepared to reinstate the gasoline subsidies if world oil prices increased significantly.
The government constantly monitors the commodity price movements to ensure people get the benefit of lower fuel prices and at the same time providing appropriate assistance if oil prices rise to high.
Therefore, the government implemented a flotation method in a controlled manner and can still help people in reducing their burden if prices of world crude oil rise.
Not Convinced: So in actual fact, the government may bring back subsidies when oil prices go up to say, US$100 per barrel. If not, Malaysians will be paying more than RM3 per litre.
The government would not have reduced pump prices had it not been the opposition kicking a fuss over it in Parliament last month.
The issue now is how the government is going to meet its budget commitments in the coming months. Almost 40 percent of the national budget comes from oil exports.
Even Petronas is being hit. Yesterday, it announced that it would cut back its spending due to lower income and sparked a drop in Bursa Malaysia and the ringgit.
Mamba: We will see how PM Najib Razak is going to play this game.
Now that subsidies have been lifted, GST (Goods and Services Tax) is coming, but Petronas is making less money, the national coffers is dry, yet his PM's Department is spending more money each year. We give, they spend.
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