Gov’t still subsidising RM400m despite fuel price hike; increase supposed to be 20 sen – finance minister II

RON_95_vs_RON_97_Fuel_Test_Malaysia_ 023

The Malaysian government is still subsidising RM400 million despite the latest round of fuel price hikes, said the second finance minister Datuk Johari Abdul Ghani. “Based on the October price, actually the price increase is supposed to be 20 sen. But Prime Minister Datuk Seri Najib Tun Razak feels that we should reduce a little bit (the increase) because we can’t increase too much,” he said.

Fuel prices were up by 15 sen across the board from November 1, with RON 95 now at RM1.95 per litre, RON 97 at 2.30 per litre, diesel at RM1.90 per litre, and Euro 5 diesel at RM2.00 per litre. This follows an earlier round of price increase in October, after September’s price drop for petrol.

The current retail prices were calculated based on the average price for October, which saw a higher increase than what the government had set for retail purchase, according to Johari. Prices are influenced by a number of factors, including the foreign exchange which fluctuates according to the flow of the global economy – a stronger ringgit against the greenback would help in lowering the fuel price, he added.

“We use a “one month behind” mechanism, so the fuel prices for December will drop if global crude oil prices also drop this month,” he said, refuting accusations that the government makes a profit from the across-the-board fuel price hike.

Back in December 2014, the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) explained that under the managed float system, it would monitor the average fuel prices for the first 19 days of each month to see if it warranted a revision. If there was a marked change, the average price of the last 10/11 days of the month would dictate the pump prices for the following month.

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • Hot Cat not Hot Dog on Nov 01, 2016 at 6:08 pm

    Sound like we must thank you loh !
    Tak boleh tahan !

    Well-loved. Like or Dislike: Thumb up 116 Thumb down 0
    • Hidden due to lowcomment rating. Click here to see.

      Poorly-rated. Like or Dislike: Thumb up 15 Thumb down 126
    • MeToo on Nov 02, 2016 at 10:42 am

      I remember a PM made this promise in Feb 2012 before the election..

      “Saya jamin harga minyak RON95 tidak akan naik, tidak kira harga pasaran minyak naik ataupun turun. Kerajaan akan terus bantu rakyat”.

      Thanks for the bantuan ya Mr PM

      Like or Dislike: Thumb up 14 Thumb down 0
      • Kunta Kinte on Nov 02, 2016 at 12:05 pm

        Don’t talk about petrol, Jib also promised car prices will come down 30%. But terbalik. Both petrol and car prices went up!

        Like or Dislike: Thumb up 9 Thumb down 0
    • Daewood on Nov 02, 2016 at 11:12 am

      Wow, we sud thx our gov million time, thx a lot……othwise we need to buy petrol at RM2/L, thx a lot but my vote still go for another party.

      Like or Dislike: Thumb up 1 Thumb down 1
    • hailthepurist on Nov 02, 2016 at 1:11 pm

      big thanx to jep..

      Like or Dislike: Thumb up 0 Thumb down 0
  • orang biasa on Nov 01, 2016 at 6:18 pm

    how about in other word, when the international fuel price drop, & gov still maintain or increase a bit the fuel price, did gov thanks to us??? or are we b0doh blind kasi dio org kon??
    skrg cakap kuat kuat, kito ada subsidy 5sen kasi you. apa lah!

    Well-loved. Like or Dislike: Thumb up 54 Thumb down 2
    • Kunta Kinte on Nov 01, 2016 at 7:29 pm

      Nothing to subsidise lah. If you produce your own oil, what is there to subsidise??? Look at Sultan of Brunei, he gives his rakyat cheap oil that Brunei produces. He does not bull about subsidise nonsence.

      You can only subsidise if you buy oil. What is the Petronas pruduces for?

      Like or Dislike: Thumb up 45 Thumb down 3
      • You have 10l to give to 10 people, compare to you have 10l to give to 20 people, so how?

        Like or Dislike: Thumb up 0 Thumb down 4
  • These kind of statement from a minister is worth less than the paper its printed on. If the calculations are really transparent, make it public then. Show all the calculation methods for the rakyat’s scrutiny, instead of these deflecting statements. Until that day came, the government will always be perceived as dishonest and manipulative.

    Well-loved. Like or Dislike: Thumb up 92 Thumb down 0
    • Jimmy on Nov 02, 2016 at 12:11 am

      I am Buddha, trust my words.

      I want to name my non-vegetarian Christian son as Romely, can? Will Italy come to my house to arrest me?

      Like or Dislike: Thumb up 0 Thumb down 12
  • The Stiq on Nov 01, 2016 at 6:24 pm

    Until today it’s your words against the general public. Just come clean and show us the calculation formulation, only so that we will be able to give you a so called “fair judgement”

    Well-loved. Like or Dislike: Thumb up 55 Thumb down 0
  • Sudahlah... on Nov 01, 2016 at 6:28 pm

    Where is the promised “Fuel Price Mechanism Formula”??

    Like or Dislike: Thumb up 47 Thumb down 1
  • What a load of bulls as always. How many times they said subsidy was withdrawn? Suka suka they will say govt subsidize and just plug the figure from the sky.

    Like or Dislike: Thumb up 40 Thumb down 0
    • Jimmy on Nov 02, 2016 at 12:18 am

      BS stands for Buddha Says wat, I worried if I use some thing related to animal for B, and something related to digested food to be passed through anus for S, I may get arrested or investigated, so I tell you I like to eat hotcar burger.

      BTW, Buddhism is the most fanatic ajaran sesat in USA.

      Like or Dislike: Thumb up 0 Thumb down 9
  • Deadpool on Nov 01, 2016 at 6:43 pm

    my msg kena blocked again, probably i need to say it more polite like
    this bunch of clowns only know how to clean up the stools came out from a bigger clown’s anus, by cheating and deceiving us, u think we are fools? nah…

    hope for the best for the next election

    Like or Dislike: Thumb up 21 Thumb down 0
    • orang biasa on Nov 01, 2016 at 10:46 pm

      Next election??!, that bunch of clowns still win as some rakyat still think current clowns is best for them to living

      Like or Dislike: Thumb up 3 Thumb down 0
  • Saitam on Nov 01, 2016 at 6:50 pm

    Subsidised RM400m? really…?
    Please kindly show us the calculation of the monthly prices and how it is derived. Be transparent.

    And if it is suddenly subsidise RM400m, from which budget it is taken from? Which other ministry got affect?

    Like or Dislike: Thumb up 48 Thumb down 0
  • Hmm... Much Hmm... on Nov 01, 2016 at 7:30 pm

    So… at first gomen say petrol will no longer be subsidized, now you say you are secretively subsidizing..

    I love how our ministers occasionally burst their own bubbles. So how much more secretive subsidize are going on behind the scene?

    Like or Dislike: Thumb up 34 Thumb down 0
  • RM400m for all malaysian..
    why not compare it with the amount of subsidies for certain several politician in malaysia…
    just abolish all the subsidies for rakyat and also for all the politician

    Like or Dislike: Thumb up 11 Thumb down 0
  • Limpek on Nov 01, 2016 at 8:35 pm

    when the car price gonna to reduce to market price?
    our car price are more expensive then US & JP 2~3 fold!

    Like or Dislike: Thumb up 3 Thumb down 0
  • Vincent on Nov 01, 2016 at 8:36 pm

    Ah Haa.. we were told that it follow market rate… now u say still subsidiary… which shall we believe? no wonder Government dare now show us the calculation details…. same old story… petrol prices up.. government can bankrupt.. and prices drop… government can also bankkrupt…apa lagi untuk mau cakap… cakap lar…

    Like or Dislike: Thumb up 15 Thumb down 0
  • Gaviny on Nov 01, 2016 at 8:40 pm

    Basically, what they trying to say is , the government money is not the people’s money, they are doing big favor to subsidize the petrol

    Like or Dislike: Thumb up 6 Thumb down 0
  • Tiger on Nov 01, 2016 at 9:03 pm

    ok If i want to accept bn generosity in this regard PROVE and provide formula that how would u calculate that increase should be 20 cents and subsidy has been given and increase 15 cents ONLY across the range and how u proof that 400 Million allocated/subsidize and y round figures always.
    U pple all forgot that one day u would be answerable to GOD
    How long more u pple lies to rakyat.In reality there is NO formula specially in this country.

    Like or Dislike: Thumb up 12 Thumb down 0
    • orang biasa on Nov 01, 2016 at 10:50 pm

      They don’t scare god, because they are “god of bullS”

      Like or Dislike: Thumb up 3 Thumb down 0
  • LOK CHYI YEU on Nov 01, 2016 at 9:39 pm

    Fuel price hike or government incapable and causing ringgit drop. Please be specific

    Like or Dislike: Thumb up 7 Thumb down 0
  • Andrekua on Nov 01, 2016 at 10:05 pm

    Terus naik 20sen loh… 5sen mau berlagak apa? I also can subsidy you 5sen if you resign lor, arsehole minister.

    Like or Dislike: Thumb up 24 Thumb down 0
  • Morons in Malaysia on Nov 01, 2016 at 11:01 pm

    Rompak RM2.6 bilion, then give back 5 sen. Padan muka semua!!!

    Like or Dislike: Thumb up 3 Thumb down 0
  • Cut the shit off najis!

    Like or Dislike: Thumb up 6 Thumb down 0
  • Shamgti on Nov 02, 2016 at 1:20 am

    Malaysia Boleh,Najib Boleh,Bn Boleh But Rakyat Tak Boleh.

    Like or Dislike: Thumb up 4 Thumb down 0
  • donno on Nov 02, 2016 at 8:26 am

    Paultan.com is already an archive of all the fuel prices in the past few years. Just use the search function on the top right of the page. You will find out that the subsidies has been ended in December 2014. You could also compare other months in previous years when the crude oil price is around USD50, and it is lower than the prices now.

    Like or Dislike: Thumb up 7 Thumb down 1
    • Why you ask them to google around the PT archive? Some of reader here not even read the article above, now you ask them to read all the archive? pffff…

      Like or Dislike: Thumb up 0 Thumb down 0
  • - Faiz Roslan on Nov 02, 2016 at 9:02 am

    As suspected, the government is still helping the rakyat yang tak kena budi

    They have been subsiding us and helping us for soo long and yet ppl are protesting here and there

    I support more subsidies removal for these ppl who don’t recognise the assistance provided by government.

    – Faiz Roslan CEng

    Like or Dislike: Thumb up 1 Thumb down 11
    • Gov shudnt remove cuz of politikus vengence, but remove them to wean the rakyat of their addiction to artificially low price. Like a freed addict, it will help us in the long run despite the suffering during withdrawal.

      Otherwise we end up like Venez, subsidy until bankrap country.

      Like or Dislike: Thumb up 0 Thumb down 4
  • Ben Yap on Nov 02, 2016 at 10:07 am

    subsidise 5 cents also cakap kuat kuat. price of cooking oil go up how to justify?

    Like or Dislike: Thumb up 2 Thumb down 0
  • ae101 on Nov 02, 2016 at 10:40 am

    Wahai orang orange kampung, please wake up and choose wisely during next GE. Don’t just because of that stupid BRIM, you all close your eyes. You all have been fooled and whacked by jibby up side down left right. What for you and your family work so hard ikat perut? We pay gomen and they should improve our life and not the other way.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Pondan on Nov 02, 2016 at 3:28 pm

    Where is the promised calculation? Fuel price is still being used to manipulate ppl as and when gov wanted.

    So much BS.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Semi-Value (Member) on Nov 02, 2016 at 8:16 pm

    beribu ribu tahniah?

    Like or Dislike: Thumb up 1 Thumb down 0
  • oh mak lu cina on Nov 02, 2016 at 11:22 pm

    We dont care how much you subsidise, you all makan suap until the ringgit shrink, is your problem!

    Like or Dislike: Thumb up 0 Thumb down 0
  • Ain’t nothing’s gonna change as long as the opposition continues to bumble around and bungle their chances. They have lost their momentum due to both the shenanigans of their own little Napoleons who just can’t shut up and take care of their constituencies/ states AND the establishment’s deft moves to harangue and hobble them via government-established and linked entities. In the end it’s the rakyat who’s gonna get schlonged – business as usual…

    Like or Dislike: Thumb up 3 Thumb down 0
 

Add a comment

required

required