Malaysians do not pump crude oil into their cars, and pump prices are based on the price of refined oil and not the raw material. And we still have the lowest pump prices in the region. This was essentially what Barisan Nasional’s strategic communications team wanted to put through via a statement released yesterday.
Reported by The Star, it was in response to opposition leaders accusing the government of increasing petrol prices for February without basis, as crude oil price for January had dropped and that the ringgit did not weaken compared to the previous month.
The statement explained that the currently employed managed float system (introduced in December 2014) uses the average price of the refined product, specifically the Singapore Means of Platts (MOPS) pricing for petrol and diesel. It added that while the increase in global oil prices in recent months has benefited Malaysia, the price of refined oil products have also increased.
The average price for Singapore’s MOPS MOGAS 95 unleaded petrol was between US$69 (RM305.84) and US$70 (RM310) per barrel last month, higher than the price range of US$62 (RM274.81) and US$68 (RM301.21) in December 2016.
“It was widely reported over the past several months that oil refineries in South-East Asia had enjoyed higher pricing and margins due to an unusually higher than normal number of refineries around the world shutting down from fires and for major maintenance work. This had reduced supply and increased the refineries’ margins and pricing, hence the higher MOGAS 95 prices,” it explained.
The comms team for the ruling coalition added that Malaysia is among the countries to still have consistently low petrol prices relative to other South-East Asian countries, and even globally.
“This is unusual as Malaysia is not a big producer and exporter of oil when compared to the other countries in the top 15 cheapest retail petrol list. In ASEAN, our RM2.30 per litre price for February compares favourably to Indonesia (RM2.73), Thailand (RM4.10), the Philippines (RM3.72) and Singapore (RM6.56),” it said, adding that while Malaysians had to bear with higher prices when global oil prices increased, they had also enjoyed prolonged periods of low petrol prices over the last two years.
The price of RON 95 petrol went up by 20 sen yesterday to RM2.30 per litre. RON 97 prices climbed by the same quantum (to RM2.60) while diesel now costs RM2.15 (up 10 sen) and and RM2.25 per litre for the Euro 5 grade (up 10 sen). The unregulated RON 100 by Petron is now at RM3.05 per litre (up 10 sen).
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Last time say global crude oil price up, that is why our petrol price at pump is up. Changing testimony and statement as you like. Next time when “refined oil” price is down, then say our petrol come from “gas” (as in hot air from your mouth).
Have you heard of this saying, “Better to remain silent and be thought a fool than to speak and to remove all doubt.”
I tot they said based on crude oil then later brent crude?!
There are two international benchmark for crude one is US crude another is Brent Crude. Brent is the most widely use standard price.
Regardless of WTI or Brent crude, RM 2.60/liter for RON 97 when crude oil is hovering at USD 55/barrel (Brent) is close to crude oil price of USD 110 (again, Brent). Who is the government trying to kid about their dubious bench-marking?
Main Bash jerr. PTPTN dh bayar belom*
BRUNEI got the cheapest oil and car price.
Apa pasal menteri takut nak cakap?
Malaysia sell our oil la, we buy cheaper oil to process. 3rd paragraph really not right at all. please go ask any “oilman” that you know.
I would like to correct some of your points regarding oil:
1. Malaysia is NET IMPORTER, and not exporter, of the commodity and petroleum products. We consume more than we produce.
2. Consider our production capability and the cost of it. To produce a barrel of our Tapis crude, it requires substantial amount. Don’t forget that our crudes are from off-shore and deepwater oil rigs.
3. Tapis Blend is light & sweet and it is expensive – that is why you sell it. If you have a veg garden, you sell your best crops at the farmers’ market to yield maximum margin. Sure, you can consume some, but selling your best crops will ensure that you continue to roll your margin for future planting – you go buy seeds ‘subsidized’ by Gomen.
Same concept with petroleum. By the way, the heavy sour Arab crudes will still be refined to spec for final product.
4. You compare with Brunei? Is it a fair comparison with our country’s GDP? Take into account the populace?
They still have many vocabs in place to tackle your doubts:
semi refined oil, half crude oil, crude refined oil, unfilter crude oil, belum masuk tong oil, cooking oil, jaggung oil, baby oil, his father oil…etc.
Forever and ever, u question them, they have answers.
Yeah well, they also work 10x harder and produce 10x the quality…
nonsense he/she talk
Jangan persoal.
where’s our neighbour brunei? not in the list?
Nice one. Maybe they opt out from ASEAN. They just want you to see what they want you to see.
Are you treating us as dumb as you? Comparing petrol price with Singapore, which is not a oil producer country? How about compare with Brunei?
Projek pembinaan laluan kereta api laju di Pantai Timur sejauh 600 kilometer dengan belanja kira-kira RM55 bilion akan merancakkan lagi ekonomi dan pelancongan di Pantai Timur termasuk menarik lebih ramai pelabur asing ke sini.
RM50 billion masuk pocket.
For the hundred and fiftieth time… We are not an oil-producing country. We have very minuscule reserves..insignificant. We have large gas reserves.
yo dum dum, what about Brunei? what the hell are those nodding donkeys pumping then? fart gas? their’s are B$0.53 per liter and thats RON97 mind u! Sure, their beloved sultan subsidizes 70% and Malaysia may not have the capability to subsidize as much but now u see for urself, sekejap harga naik becos crude oil price naik, now naik becos refined oil naik. stop trying to be a smart-s.
What kind of nonsense is BN trying to crap out over the recent hike! Since when has Malaysian used crude oil for our cars? Idiots trying to squirm out of answering the rakyat…what they are saying still doesn’t justify the price hike. Since the float began the price variance reflect not the same as previous international oil price…so when does the pricing change from crude to refine? BN = Barang Naik!
Alasan orang bodoh dan bangang utk rakyat yg tolol akan mempercayai nya.
I always believe that subsidy should go to the deserving ones.
We already have IC with chips. Why not just allocate to people with cars/driving licence, a maximum allowed subsidy each month 100/200 litres . This is easier to control.
One of the lowest pay in the region as well…
Next month they say it is based on cooking oil.
Kan dah ckp.. Lagi murah berbanding Singapore. Tak cukup Singapore, kita lagi murah berbanding planet pluto.
Can PaulTan do an investigative report to verify what the government is claiming?
Don’t dare to include Brunei?
You still have not answered us that Singapore pump prices in Dec 16 – Jan 17 hovering about the same but here increase 20 cents??? Where and how did you made that assumption?
Also quit telling us that we are cheap are our RON95 of the same quality even compared to Thailand if its not then shut up seriously stop lying and give us proper Euro4 grade already.
Mula dulu kata ikut crude oil(Wti) price. And then they said we are now based on Brent Crude Oil price. Yesterday they said we follow refined oil price.
In future I think BN will follow Gaharu Oil price (1 liter rm5000)
we had to be lower in prices in the region of course! we are an oil producing country! and what’s the euro grade of our petrol ???
Just publish the formula on how we calculate our fuel price, no need to talk and explain too much,no one will believe what they say.
That’s right. Publish the formula and show us how it is calculated. Lack of transparency is a big problem with the government. Rakyat will keep on suspecting and speculating without the transparency.
Saya Putar , Halim
keep Spinning
Wang Besar!! Wang Besar!! Wang Besar!!
Load of rubbish -every time want to spin to confuse the rakyat. The % of monthy disposable income spent on petrol in Bolehland is one of the highest petrol to income ratio. This so-called strategic team should offer an explanation on why the ringgit is moving towards being a banana currency instead.As they like to shiok sendiri, most welcome to compare against neighbour’s currency.
If what government said is true.. trust worthy…you will see cow flying!
Remember when world oil price is up at 130 level… our government say, continue subsidiary petrol will make Malaysia Bankrupt. Later when world oil price drop to 40 level, they say again that they will bankrupt!!! We all the reason of Malaysian debt.. currency drop was because of dishonest..incompetence governent!!
If only our car can use raw crude, Rakyat M’sia don’t have to pay for all the BS & crappy nonsense spew by our Gov officials trying to explain as if we are all idiots.
Less cars & motors, more public transports
Our oil price Lower than Asean neighbors ?
Why is Singapore lumped into the price comparison ?
First of all , Singapore is not an oil producing nation, if you want to compare so, please do a comparison againts
1.Brunei, ( RM 1.66 per liter)
2.Kuwait ( RM 1.55 per liter)
3.Saudi Arabia ( RM 1.08 per liter)
nows lets see how which country is cheaper.
Not mentioneded in the articles is also the average earnings of Singapore Citizens. Singaporeans earn 4.30 times more than the average Malaysian, Singapore petrol is however is only 2.85 times higher than Malaysia. Therefore purchasing power in Singapore is higher in relative comparison.
I had work in the oil industry and The government has kept the price mechanism calculation a secret which meant, there is no way the Rakyat will ever get to determined how prices are derived. The government just refused to publish the pricing mechanism.
Each time time the government try to justify something, it only makes them look more like a fool. I “hope” they would come clean, show the mechanism of price calculation and admit that the Government needs the money because of the fiscal debt and financial wastage much on their part.
Bingo. Mental Disorder spokesperson gave irrelevant statements. Trying to compare neighbor ASEAN EURO5/EURO6 gasoline with local EURO2/EURO4M gasoline. Claiming local petrol still cheaper but it’s quality sucks and carcinogenic to mankind and environment… ohwai
Next month petrol/diesel increase again maybe say oil drum price increase or oil tanker price increase ok? Ohwai…
When they’ve finally run out of excuse, they will use the ‘need to balance the country’s budget for our nation’s development’ reason
Say what you like or give whatever reasons you wish but the typical Malaysian is feeling the effects. The main question is not why petrol prices went up 20 cents or 10 cents. This will fluctuate each month but more importantly, what is the Government doing to help its people?
It seems like nowadays the Government is only taking and not giving back. GST la, increased fuel prices la, removal of subsidies la, increase in hospitalization fees la…you name it. How is the money saved used? Don’t always say BR1M BR1M BR1M, although that helps a little but its not a long term solution for everyone.
This group of Oil producer cartels purposely cut there production supplies and then closed down there many refineries claiming fire calamity or bad maintenance, therefore there can manipulate the fuel price to maintain there lavish lifestyle or service there due bonds/debts…ohwai
Ur goverment is really a big joker. Loads of dump speaking nonsense.
An oil barrel (abbreviated as bbl) is a unit of volume whose definition has not been universally standardized. In the United States, an oil barrel is defined as 42 US gallons, which is about 159 litres or 35 imperial gallons.
USD70 X RM4.45= RM 311.50
RM311.5 / 159 litres = RM 1.95
Maybe got some other hidden cost.
hahahaha…. we still have the lowest pump prices in the region… that’s the same excuse the government have been using for the past decades.
Poor Brunei… not in our “region” hahaha
Untuk kesejahteraan Rakyat… That was the reason why they increased fuel prices ?!?
I’m feeling so sejahtera now!
eeei..sakit pulak hati kite..
Malaysia is nett exporter of crude oil, and nett importer of refined oil. Don’t mix these two together, like, new Zealand is nett exporter of Apple, nett importer of durian. Some politicians want to say the “total nett” of the two when apple minus durian etc is crazy mathematics, it’s jungle mathematics. First of all, if you are nett exporter of crude oil, you wish the crude to be expensive, the higher the price, the more money you get. When foreign countries buy the crude at high price, they add a margin and sell back to us, only refined oil is usable for daily life, Malaysia needs to buy refined oil, very sadly, because we have no technology to refine, no matter how much money Petronas invested in their R and D, they can’t refine enough oils in-house. We should always refine enough oil for internal consumption since we have so much feedstock or raw crude, then we sell additional crude to others. we should even export refined oil if possible. However, too many should should should…… This is Malaysia
Good job, BN. Traffic very jam in klang valley, cars everywhere till u can hardly find car park at shopping mall. Please continue raise the price, those cant afford just go take bus, lrt, or just convert to motorbike. No need to listen to those bullshit basher but end of day traffic still terrible like hell. If they cant afford they dun drive, problem solved.
I thought some minister said don’t compare with other country. Not happy, you keluar…
If gov said they don’t how to regulate, then just let it free float. Keluar if you are not happy to suffer when price dipped…
“It was widely reported over the past several months that oil refineries in South-East Asia had enjoyed higher pricing and margins”
…seriously? then why so many oil co close shop in recent months. ^^
lower than ASEAN neighbors? How much does petrol costs in Brunei?
What is the income of rakyat compared to Singapore?
Dumb dude.
Poor Brunei, forever not included in the region as a Malaysian neighbor according to our Ministers.