Diesel price up due to large subsidies paid – Hasan

Malaysian_Fuel_Prices_Subsidies_November_2014

Instead of the price drops enjoyed by RON 95 and 97 petrol post-float, the price of diesel has gone up three sen to RM2.23 a litre because of a large amount of subsidy paid by the government previously, Domestic Trade, Cooperatives and Consumerism minister Datuk Seri Hasan Malek has said, Bernama reports.

“(Translated) With regards to diesel, the amount of subsidy paid before was too large. Therefore, after study and discussions, we cannot lower the price. Based on the float system, we have no choice but to raise the price (of diesel) by three sen a litre,” the national news agency quoted him as saying.

Hasan said the government will monitor this month’s market prices to determine next month’s petrol and diesel retail prices, besides looking at new approaches based on feedback.

The price of RON 95 petrol dropped today by four sen to RM2.26 a litre, and that of RON 97 petrol by nine sen to RM2.46 a litre. However, the price of diesel rose three sen to RM2.23 a litre. Euro 5 diesel, currently available in Johor, has gone up by three sen as well, now retailing at RM2.33 per litre.

The price changes follow the ministry’s announcement about two weeks ago that subsidies for RON 95 petrol and diesel would be no more from December 1, and that their prices would, like RON 97 petrol, be derived based on a managed float system.

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Jonathan James Tan

While most dream of the future, Jonathan Tan dreams of the past, although he's never been there. Fantasises much too often about cruising down Treacher Road (Jalan Sultan Ismail) in a Triumph Stag that actually works, and hopes this stint here will snap him back to present reality.

 

Comments

  • Sparcov on Dec 01, 2014 at 5:27 pm

    Talk about previously,

    Previously Diesel price less than RM 1 per litre.

    Can you reduce to previously?

    Well-loved. Like or Dislike: Thumb up 110 Thumb down 2
    • Songlap money hard to give back

      Like or Dislike: Thumb up 30 Thumb down 1
      • prabowi on Dec 02, 2014 at 8:02 am

        Increase diesel price to recoup back subsidy aka fuel tax? But why putting tax on the diesel? It should be on the RON97 aka rich man’s fuel. And yet the RON97 gets the biggest price cut. The logic is all wrong.

        Like or Dislike: Thumb up 18 Thumb down 1
        • Gargantia on Dec 02, 2014 at 9:34 am

          Tax payer (Rakyat) feed Gov (Ministers).

          Gov (Ministers) feed Cronies (Corruption).

          Story keep and keep going. By year 2020 only left super rich cronies and poor Rakyat.
          Thanks to PM new protection policy.

          Like or Dislike: Thumb up 24 Thumb down 1
        • Maserati(Official) on Dec 02, 2014 at 9:47 am

          What stupid reasoning is this? Then, the BR1M given now, 10 years down the road, they will ask it back ah?

          Cannot believe our UMNO got brains in their backsides.

          Like or Dislike: Thumb up 13 Thumb down 0
        • Kangkung Rojak on Dec 02, 2014 at 11:35 am

          What we need is fuel price transparancy.
          How Gomen decide and publish the fuel cost since there is no more subsidy.

          IMHO.
          All Malaysian deserve to get same fuel price.
          Rationally, Rich man pay higher fuel price seems correct.

          But, Rich man already paid higher income tax.
          Therefore, Everybody should get the same fuel price. Let’s user to choose which fuel they want.

          What I m concern is. When the car price drop.
          Previously, car on high tax because of fuel subsidy. Now, subsidy no more, why car price and tax still high like hell.

          High tax on luxury car is understandable.
          But why normal C segment car still billed on high tax price? Even P1 P2 car also high tax?

          In others country, as long as CKD, the car are billed in sales tax only.

          Malaysian should know. By right or by left.
          National car such as P1, P2 should be tax free!!!! the only applicable tax is GST/sales tax only!

          Like or Dislike: Thumb up 6 Thumb down 0
    • I really hope the Diesel price can continue to be subsidized.
      We are still in a developing country.

      Like or Dislike: Thumb up 13 Thumb down 4
      • OMG…Hopeless on this G…I really dunno where all our taxpayer $ gone until the G now so desperate to find $ from us…puihhh..

        Like or Dislike: Thumb up 5 Thumb down 0
    • GTR 2.0 on Dec 01, 2014 at 10:55 pm

      Agreed. Baru je habis bersidang, dah keluar statement yang kurang cerdik. Where all the ‘Soul Je’? Please advise your minister not to come out with provocative statement like this.

      Like or Dislike: Thumb up 17 Thumb down 0
      • Henry on Dec 02, 2014 at 8:27 am

        If only they use their fertile mind to do good for the people and country instead of demonising others and spew hate.

        Like or Dislike: Thumb up 9 Thumb down 0
    • Duncan Lim on Dec 01, 2014 at 11:29 pm

      Don’t dream la. Rakyat wallet sakit better than their wallet sakit.

      Like or Dislike: Thumb up 23 Thumb down 0
    • JB_KIA on Dec 02, 2014 at 10:05 am

      whatever price it is….ron97 is out of stock everywhere here in JB.

      Like or Dislike: Thumb up 1 Thumb down 0
    • KIM_JONG_UN on Dec 02, 2014 at 2:37 pm

      They take up diesel price for BROOM in 2015. What a good logic.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Really bro? on Dec 01, 2014 at 5:39 pm

    Really bro?

    Like or Dislike: Thumb up 10 Thumb down 0
    • lilytan on Dec 02, 2014 at 9:23 am

      In the latest statement, it was said that diesel is costlier to produce, justifying the price hike. If it is so, the greedy oil tycoons should be blamed for the hike. By using sub standard crude oil, refining diesel is more difficult thus more costly.

      Like or Dislike: Thumb up 4 Thumb down 0
  • wtf!!!! we had also paid so many taxes to government! Then, should government gives it back to us? Or like that, where is the money gone?

    Well-loved. Like or Dislike: Thumb up 65 Thumb down 1
    • Gargantia on Dec 01, 2014 at 10:27 pm

      Cronies and ministers OR just one word “Corruption”.

      Like or Dislike: Thumb up 31 Thumb down 1
    • Henry on Dec 02, 2014 at 8:30 am

      With oil price down to a four year low the life ahead is going to be tough for ordinary citizens. The current budget is not workable anymore. There’ll be more borrowings.

      The only consolation is almost the whole world is living on debts.

      Like or Dislike: Thumb up 5 Thumb down 0
    • goes to shopping at Europe buy cincin berlian, branded beg lo….

      Like or Dislike: Thumb up 1 Thumb down 0
  • Jonathan, please include the before translation text too. The translated phrase sounds like someone’s trying to earn back the losses (which means you’re paying more than the market price):

    “With regards to diesel, the amount of subsidy paid before was too large. Therefore, after study and discussions, we cannot lower the price. Based on the float system, we have no choice but to raise the price (of diesel) by three sen a litre…”

    Sounds very very wrong.

    Like or Dislike: Thumb up 48 Thumb down 0
  • nabill (Member) on Dec 01, 2014 at 6:16 pm

    i wd have prefered for ron 95 to stay at same prices bt lower diesel….bcos it impacts transportation costs and thus , even ur innocent looking mineral water bottle will be more costly…and they say no impact on inflation , i mean which zoo some ppl graduate from…??

    Well-loved. Like or Dislike: Thumb up 58 Thumb down 1
  • antiGov on Dec 01, 2014 at 6:19 pm

    Because of Petroliam Nasional Bhd (Petronas)lost in share, Rakyat have to suffer on this higher petrol price.WTF!!!

    Like or Dislike: Thumb up 25 Thumb down 4
  • Why Diesel euro 5 not go to whole Malaysia?
    why Singapore Diesel is so much cheaper compare to Petrol when Singapore also without subsidy?
    all the while everyone know diesel is cheaper then petrol and now BN government telling us petrol is almost same price as petrol!?
    here the price list for singapore:
    http://www.caltex.com/sg/resources/fuel-price/
    http://www.shell.com.sg/products-services/on-the-road/fuels/price-board.html

    Like or Dislike: Thumb up 38 Thumb down 1
    • Thinking on Dec 01, 2014 at 8:00 pm

      If you translate the the price from Singapore Dollar to Malaysia Ringgit ron 95 there cost about RM4.97 here. Diesel i dont know why its increase but i think if the oil price trend down than diesel price will eventually scale down too.

      Like or Dislike: Thumb up 0 Thumb down 43
      • dreaming on Dec 02, 2014 at 1:03 am

        Brader, you should be thinking with your brain and not your ass.

        Like or Dislike: Thumb up 20 Thumb down 1
        • slk3879 on Dec 02, 2014 at 7:51 am

          obviously this “thinking” is thinking with his ass as you said!

          Like or Dislike: Thumb up 8 Thumb down 0
    • Well you cant expect Diesel Euro 5 available instanly. It took a lot of procedure and work paper to do.

      Like or Dislike: Thumb up 1 Thumb down 25
      • hadi75 on Dec 01, 2014 at 10:38 pm

        For own rakyat needs alot of things to consider but when the singapore government implemented strict emission control…suddenly johor got euro5….

        Like or Dislike: Thumb up 31 Thumb down 0
    • dreaming on Dec 02, 2014 at 1:11 am

      Bcoz our diesel must be Euro 7 Grade thats why expensive than petrol compared to whole world.

      Like or Dislike: Thumb up 7 Thumb down 0
  • 1. Penat dah bayar tax lhdn…byk wo
    2. Petrol pun dah tak de subsidi
    3. Harga kereta masih mahal
    4. Rumah sangat mahal
    5. Br1m jgn mimpi la nak dapat
    6. Petronas punye duit tak tahu kemana
    7. Cukai pintu tinggi …denggi makin teruk

    Sadis sungguh…

    Well-loved. Like or Dislike: Thumb up 132 Thumb down 1
    • Kangkung Rojak on Dec 02, 2014 at 11:48 am

      Thanks to 47% ppl choose Barang Naik.
      Masih dalam mimpi!
      Bila bangun, baru rasa BN= Barang Naik.
      BN Janji ditepati sudah jadi Barang Naik sudah dicapai,
      Kocek kroni penuh diisi.
      Bila bangun baru sedar ape jadi.

      Wake up malaysian..

      Like or Dislike: Thumb up 7 Thumb down 0
      • I am one of the 47% on Dec 02, 2014 at 3:03 pm

        Oh BN. Kamu rogol saya, semasa saya masih dalam mimpi.
        Kamu ambil dompet saya, kamu ambil baju saya, kamu ambil seluar saya. Seluar dalam saya pun awak tak nak lepaskan.
        Oh BN. Saya sudah bangun. Habisla engkau, pilihan raya seterusnya.

        Like or Dislike: Thumb up 5 Thumb down 0
    • thedarkside on Dec 02, 2014 at 2:06 pm

      8.yuran nursery naik tiap tahun
      9.jalanraya penuh tol
      10.harga makanan kedai mamak tak turun
      11.BFR naik
      12.blood pressure pun naik

      Like or Dislike: Thumb up 6 Thumb down 0
  • old dog on Dec 01, 2014 at 6:36 pm

    so all previous subsidized to calculate back means the price will forever never going to drop.

    What about those Finlandking tax of those import tax, tol, R&D dump into the stupid Protong, where cronies benefit?

    Bolehland can change to Croniesland now…crazy..

    Like or Dislike: Thumb up 44 Thumb down 0
    • Kangkung Rojak on Dec 02, 2014 at 11:49 am

      Still Boleh land.
      Tapi hanya Cronies Boleh.
      Malaysian X boleh.

      Like or Dislike: Thumb up 2 Thumb down 0
  • nobrand on Dec 01, 2014 at 6:49 pm

    What kind of government is this. They consider previous subsidy as a debt? They are more worst than Along

    Well-loved. Like or Dislike: Thumb up 67 Thumb down 0
  • cendol (Member) on Dec 01, 2014 at 6:54 pm

    The only true benefitor for this petrol price fiasco is petroleum companies belonging to cronies.
    Petrol price increase can earn more, petrol price drop also can earn back by increasing price.

    Like or Dislike: Thumb up 26 Thumb down 0
  • aiyayai on Dec 01, 2014 at 7:01 pm

    Let’s say:

    rm 2.00 is the float price
    rm 0.43 is the TAX
    rm 0.13 is the so called gimmick subsidy
    rm 2.30 is the price we are paying and with this price, the Government is actually earning rm 0.30 rather than 0.43

    Ironic isn’t it? Include TAX and then minus subsidy = controlled price.

    The subsidy is a gimmick, in another word; SUBSIDY = just giving little discount on the TAX.

    At the end of the day, no money is being forked out for subsidy.

    Like or Dislike: Thumb up 42 Thumb down 0
    • Albert on Dec 01, 2014 at 8:17 pm

      If the price of crude oil hovers around USD 50 per barrel,MR.Gimmick will reduce the price of Ron 95 a little more,but don’t rejoice yet.
      Petronas will get very much less revenue from sales of crude oil,internationally.
      With less revenue from Petronas,the gomen will have to look for Billions of RM elsewhere to plug the shortfall.
      From where? 1.Taxpayers 2.Impending GST 3.EPF 4.Bonds 5. Heavier Excise Duties on cars 6.Levies on foreign workers and sukuks.
      The price of oil can be a double edged sword.

      Like or Dislike: Thumb up 21 Thumb down 1
      • LandoCar on Dec 02, 2014 at 8:16 am

        Additional income from where?

        Huh! Petronas overseas JVs bring in more money than local production. A lot of things our government is not telling us.

        Don’t worry. ..malaysia plenty money mah!

        Like or Dislike: Thumb up 0 Thumb down 0
      • Kangkung Rojak on Dec 02, 2014 at 11:59 am

        Malaysia 30% income from oil.
        Now oil price low, demand less, profit less.

        Palm, No price, No buyer, due to cronism.
        Now, international buyer all buy from Indo

        Rubber, Gomen no action plan and no encouragement.
        Indo, Thai are largest exporter. Buyer all buy from there.

        Manufacturing, No further investors come to Boleh land. Poor policy stability, incentive,poor security, incompetance port, corrupted custom, poor efficiency gomen dept. Thai, Indo are more attractive.

        Others Agriculture, our Jabatan pertanian no improvement in R&D. No encouragement plan/incentive.
        With conventional old school technology. Malaysia’s Jagung is higher price than US!

        Medical? you quote it
        Tourism? how many ppl lost or missing in Sabah island?

        Property?
        Yes very good bubble made by cronies.
        Whole malaysia might doomed…

        Like or Dislike: Thumb up 11 Thumb down 1
  • That means pretty much every single product that is transported by trucks will now be even more expensive.
    Good job BN, you never fail to Fck the rakyat in their A*S CHEEKS.

    Like or Dislike: Thumb up 29 Thumb down 0
  • previously I paid a lot of tax, why don’t gamen pay me back the money?

    Like or Dislike: Thumb up 20 Thumb down 0
    • passerby00 on Dec 02, 2014 at 8:38 am

      got; they give you back ma with BR1M but depends whether you and I qualified ma. LOL

      Like or Dislike: Thumb up 1 Thumb down 0
  • Really on Dec 01, 2014 at 7:48 pm

    The key word here is ‘managed’ in the so-called managed float system. Does the prices of fuel at the pumps really reflect the prices of crude oil worldwide or there is still a certain amount of margins implemented in the system by the G? You know, maybe so that the business owners (read: cronies) won’t suffer from lower profit margins.

    Like or Dislike: Thumb up 6 Thumb down 0
  • ahmad nisfu on Dec 01, 2014 at 8:43 pm

    Ape yang kau merepek ni syaitan…..

    Like or Dislike: Thumb up 19 Thumb down 1
  • froggie on Dec 01, 2014 at 9:01 pm

    Diesel is cost less every where else. Why on earth here it is different? Is it a problem with poor maths due to our education system?

    Like or Dislike: Thumb up 20 Thumb down 0
  • niterunner99 on Dec 01, 2014 at 9:12 pm

    Gd luck to diesel cars owners, now its close to same price to petrol.
    bet in future, that euro5 diesel will cost more than RON95!

    Like or Dislike: Thumb up 6 Thumb down 0
    • Along on Dec 01, 2014 at 10:55 pm

      Not for long and already to become true which diesel will be more expensive than RON 95 in future… Euro 2M diesel will also cost more than RON 95 because of the ‘float system’ which heavily depends on supply and demand… I will not be surprised if diesel will be more expensive than RON 95 in future… Once diesel price is more than RON 95, it will be a big disaster for our daily lives… Price of goods will increased sharply…

      Diesel price is a major concern. I’m as a lorry driver and owner, I’m really concerned about the price of diesel fuel… It affects my logistics budget…

      Like or Dislike: Thumb up 9 Thumb down 0
  • Crasher7 on Dec 01, 2014 at 9:39 pm

    What a load of BS!!!

    Like or Dislike: Thumb up 14 Thumb down 0
  • biggbro on Dec 01, 2014 at 9:57 pm

    Hopeless government screws us in every holes possible..what do we gain from this crazy oil price crash? Nothing i would say! Even the freakin diesel has gone up…might as well we subsidised the gov than the other way round.

    Like or Dislike: Thumb up 5 Thumb down 1
  • This is such a reckless move made by the government.
    So hypotically speaking, say even if price of worldwide crude oil becomes zero, malaysian folks might still even be paying RM 1.xx per liter… just to ‘pay-back’ to our government?!?

    Like or Dislike: Thumb up 9 Thumb down 0
    • Duncan Lim on Dec 01, 2014 at 11:53 pm

      Regardless how much more the price drop. We just need to make sure we pay enough to maintain their current lifestyle.

      I MAD!!!!!

      Like or Dislike: Thumb up 8 Thumb down 0
  • So it’s not based on market price for crude oil after all. It’s totally basing on an imaginative market price for ‘my pockets’ where if the coffers are empty, the price goes up.

    Like or Dislike: Thumb up 6 Thumb down 0
  • Otak di lutut on Dec 01, 2014 at 11:56 pm

    Then why did u give out subsidies if u want to take it back in the end? Is this sandiwara to make us happy for a while??
    In that case Br1m also u wanna take back from us at a later date??
    Is this sincerity?

    Like or Dislike: Thumb up 10 Thumb down 0
  • Singh on Dec 02, 2014 at 12:50 am

    Why isn’t calculations on our current fuel prices be made transparent?
    Is there even an element of ‘mark-up’ being applied even to our RON 95? Maybe prices for RON 95 should be dropping even more than 4 sen?

    Like or Dislike: Thumb up 3 Thumb down 0
  • change on Dec 02, 2014 at 7:55 am

    Lets educate our brothers n sisters in kampungs that because of their vote, now everyone suffers. Lets not make the same mistake, vote for change!!!

    Like or Dislike: Thumb up 5 Thumb down 0
  • change on Dec 02, 2014 at 7:55 am

    Lets educate our brothers n sisters in kampungs that because of their vote, now everyone suffers. Lets not make the same mistake, vote for change!!!

    Like or Dislike: Thumb up 7 Thumb down 0
  • common sensor on Dec 02, 2014 at 7:57 am

    Bangang

    Like or Dislike: Thumb up 5 Thumb down 0
  • Shahrir Samad on Dec 02, 2014 at 8:30 am

    wow… RM0.12 is a large subsidy…

    please take my blood too…;(

    Like or Dislike: Thumb up 2 Thumb down 0
  • Jumbuck on Dec 02, 2014 at 8:33 am

    Diesel should be priced at RM3 a litre. Who need trucks to carry loads? Proton Jumbuck can carry all you needs

    Like or Dislike: Thumb up 1 Thumb down 2
  • passerby00 on Dec 02, 2014 at 8:36 am

    wtf; in that case; since we have also been subsidizing cronies pockets for so many years; can we ask them to fund and return back our hard-earned money for over-priced cars? the APs, the duties is no longer justified after the so-called market price rationalization on fuel costs and we are now subsidizing the government via the 6% GST next year and exorbitant taxes for all our cars and bikes.

    Like or Dislike: Thumb up 5 Thumb down 0
  • azrai on Dec 02, 2014 at 8:40 am

    There’s a proverb on this in Malay. BURUK SIKU.

    Like or Dislike: Thumb up 9 Thumb down 0
  • statement yg bodoh oleh seorg menteri..

    “amount of subsidy paid before was too large” >>>too large? how large? besar gajah? ka dinasour? cuba bagi statistik or data yg kukuh sket bro menteri..hang tu menteri bukan budak opis boi..rakyat skrg bukan bodoh..malu la ada menteri mcm ni

    Like or Dislike: Thumb up 9 Thumb down 0
  • Another cronies stupid publicity from BN in bolehland! Ya,maybe rakyat can continue support BN next election???!!! I sh*t you not!!!

    Like or Dislike: Thumb up 3 Thumb down 0
  • is euro5 diesel subsidized?? rm2.33 compare to the diesel we are using rm2.23… i rather pay the extra 0.10 to use euro5 diesel..

    Like or Dislike: Thumb up 3 Thumb down 0
  • ThePolygon on Dec 02, 2014 at 9:24 am

    He should just said because our Diesel standard is Euro 8.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Diesel price up means all power stations must increase its cost to generate electricity. Now TNB can come up with ‘price rationalization’ in 2015.

    Like or Dislike: Thumb up 2 Thumb down 0
    • Kangkung Rojak on Dec 02, 2014 at 12:03 pm

      it’s dangerous to mention this company name.
      Unless you want to go jail..
      LOL

      Like or Dislike: Thumb up 1 Thumb down 0
  • Petrofsky77 (Member) on Dec 02, 2014 at 9:34 am

    As expected, Asan ayam has did it again! These ministers will never learn do they?

    Like or Dislike: Thumb up 4 Thumb down 0
  • Aponso on Dec 02, 2014 at 9:42 am

    If that’s the kind of reasoning used to explain why the price of diesel is up, in the future they can use the same reason to jack up the price of sugar, rice, cooking oil etc. Another sad day in bolehland.

    Like or Dislike: Thumb up 5 Thumb down 0
  • c. p. mohan on Dec 02, 2014 at 9:51 am

    If you look at subsidy as a luxury item, I agree for zero-rated subsidy but if you look at subsidy as a cost for doing business or to make us more competitive, I disagree for zero-rated subsidy.

    However, I think the government is looking at subsidy as an opportunity forgone. What is the opportunity that we forgo by using instead our money on subsidies? the answer may be all around us or symbolizes wasted opportunities.

    Like or Dislike: Thumb up 1 Thumb down 0
  • kemosabe on Dec 02, 2014 at 10:06 am

    Isn’t the subsidies(if any) given out is being derived from our own money?

    The government speaks like a business entity.
    A government is a non-profit organisation.
    Which government is this world behaves like ours? (except for corrupt ones)

    Like or Dislike: Thumb up 4 Thumb down 0
  • zerol on Dec 02, 2014 at 10:19 am

    hello paul.. can u give us figures and facts which is better 95 or 97.. some claimed 97 can go longer.. but they seem forgot to factor in price difference.. u pay 20 sen more for the extra km.. so the question is the extra km is compensate with the price we paid.

    Like or Dislike: Thumb up 0 Thumb down 0
  • FuelFuel on Dec 02, 2014 at 11:23 am

    Since fuel prices goes down, ive seen there a lot of petrol kiosk out of stock RON 97. Why this is happened? Are they controlled the fuel?

    Like or Dislike: Thumb up 0 Thumb down 0
  • wawasan on Dec 02, 2014 at 12:38 pm

    No need to talk so much lah, just show us the computation and what price is use to compute the Harga Sebenar.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Rally driver on Dec 02, 2014 at 4:05 pm

    Truck driver now suffer specially at Borneo but don’t worry……LS9 Vette engine swap!!!!!!

    Like or Dislike: Thumb up 0 Thumb down 0
  • And many are happy with their BR1M. It just matter of time they will ask you to return it.

    Talking about buruk siku.

    Like or Dislike: Thumb up 1 Thumb down 0
 

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