• Najib: ban on refueling foreign cars delayed

    The issue on whether petrol pumps in border towns can sell fuel to foreign-registered vehicles is still unclear, as different people in different ministries seem to be saying different things, all within the span of a few days.

    Domestic Trade and Consumer Affairs Ministry Datuk Shahrir Samad was originally reported to say that the sale of fuel to foreign cars will be banned from Friday the 30th last month onwards, but on Friday his ministry issued a letter saying that the ban would only come into force this week for the Thai border towns, and on June 9th for the Singapore border towns.

    On Sunday, Deputy Prime Minister Najib Tun Razak said the decision on whether and when to curb foreign cars from filling up will only be decided tomorrow (Tuesday). So for the moment, the fuel business should be able to go on as usual at the border towns.

     
  • New fuel subsidy plan in the next 3 months!

    Fuel Price Joke

    The announcement of a new fuel subsidy plan is not likely to happen anytime soon as the cabinet meeting to discuss the subsidy issues as revealed by Second Finance Minister Tan Sri Nor Mohamed Yakcop last week did not happen. Deputy Prime Minister Najib Razak told Bernama yesterday that several ministers were not able to make it to the meeting, and a few others requested that the meeting be postponed. The cabinet will meet again on this coming Wednesday, so let’s hope the discussion happens this time.

    Second Finance Minister Nor Mohamed Yakcop mentioned earlier this week that the subsidy pan will be unveiled before the Budget 2009 meeting, which will happen on the 29th of August 2008. This means the new subsidy plan will happen anytime within the next 3 months.

    In other fuel related news, the Domestic Trade and Consumer Affairs Ministry (DTCAM) has released a letter stating that a ban on selling fuel to foreign cars will only come into effect next week instead of yesterday, and it would only apply to the northern area within 50km from the border. The ban down south 50km from the Singaporean border will only start on the 9th of June 2008.

    More after the jump…
    Read more ›

     
  • Grand Saga highway barrier is a fuel guzzler!

    You may be wondering about the strange headline for this post. If you have been reading papers for the past few days, you would be aware of the whole Bandar Mahkota Cheras and Cheras-Kajang Expressway barricade issue.

    Basically, the gist of it is that the residents of Bandar Mahkota Cheras have been using a recently constructed link road to enter the highway which allowed them to bypass the Batu 11 toll plaza. Using the link road, their journey is shorter and they would only have to pay toll at the Batu 9 toll plaza. This of course reduces revenue for the highway’s concessionaire, Grand Saga Sdn Bhd.

    So Grand Saga put up a barrier, blocking the link road. The result: residents of Bandar Mahkota Cheras have to pay the additional toll at the Batu 11 toll place, but that’s not all.

    According to the Malay Mail they have to travel an additional 6km because of the detour. In times where the government is bleeding from fuel subsidies, the Cheras-Kajang Expressway barricades block a link road that shortens commuting distance, so more fuel is consumed.

    On a car that consumes 8 litres per 100km, an additional 6km means an extra 0.48 litres of fuel consumed per journey, or 14.4 litres of fuel a month. Multiply this by a thousand residents who drive and that’s 14400 litres of fuel. Multiply that by 12 months – 172800 litres of fuel wasted a year. Oh, and I almost forgot… multiply that by a two way journey and you get 345600 litres per year.

    Assuming a subsidy of RM1 per litre, that’s RM345,600 of government cash spent per year per 1000 residents. Two factors would inflate the actual total number even more, the fact that there are so much more than 1000 residents in that area and the fact that a lot of cars consume more than 8 litres per 100km.

    Another inflating factor would be the fact that a non-highway detour route would most likely have lots of slow, stop-and-go traffic, increasing fuel consumption significantly. We may be looking at an actual figure of 12 to 15 litres per 100km.

    Do the math!

     
  • Foreign cars banned from filling up near border

    petronas_450.jpg

    The government has banned all petrol stations within 30 to 50km from the Malaysia-Thailand border and the Malaysia-Singapore border from selling fuel to foreign cars beginning this Friday (30th May 2008) onwards. This would include all petrol stations in Perlis, Kedah, North Perak, Kelantan, and several Johor distrincts. Offending petrol station owners would be fined up to RM250,000 or jailed 3 years or both.

    I know that there are some people, especially those who live in the northern states who buy and register cars in Thailand, but drive them around in Malaysia. They would certainly be in a fix as now they would have difficulty filling up their fuel tanks, as even though they are Malaysian and their cars are being used in Malaysia, their number plates are foreign. I can think of a probable but illegal solution they’d come up with: fake local number plates?

    This ban is only temporary until a permanent solution is introduced to prevent fuel subsidies from being enjoyed by those who are not intended to receive them.

    In the same report by Bernama, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said that the Federation of Malaysian Consumers Associations (FOMCA) has suggested petrol subsidies to be given out based on engine size would be considered. This seems logical as first as the rich would have cars with larger engines, but with the world engine trends moving towards displacement downsizing and the likeliness of the rich being able to access this latest technology in the first place, it is another idea which in practice is not going to be completely effective.

    As it is the popular Mercedes-Benz E200K and C200K uses 1.8 litre engines, and the large Volkswagen Passat is available with a 1.4 litre engine. That is smaller than a Proton Persona’s engine in terms of displacement.

     
  • Nor: Revised fuel subsidy to be decided soon

    Second Finance Minister Tan Sri Nor Mohamed Yakcop revealed last week that the new scheme for subsidised fuel will be revealed in a few month’s time by the Prime Minister, and will benefit low to middle-income earners, with the rich having to pay more together with all the higher tax brackets that they are already paying.

    The Cabinet Committee on Inflation will be meeting tomorrow to discuss various measures on how to solve the problem of increasing fuel subsidy costs, which according to current calculations, will amount to RM45 billion this year based on an oil price of US$120 per barrel.

    Indonesia is tackling the situation by providing cash relief directly to the poor – an amount of US$1.5 billion in total. On the 24th of May 2008, Indonesia raised the prices of fuel products by up to nearly 30%.

    Under the cash relief scheme, US$10 will be given every month over the next 1 and a half years to 19 million families, hardly enough to compensate for the rise of the fuel itself and the domino effect it will have on other products like food.

    Source 1, Source 2

     
  • ePetrol: possible fuel subsidy control mechanism?

    MyKad ePetrol

    Those who attended the World Congress on Information Technology 2008 (WCIT 2008) this week may have spotted this display by ePetrol Sdn Bhd. While the company was more friendlier and interested in demoing to Datuks in suits rather than the more plebian-looking visitors such as yours truly, I manage to overhear a demo to one example of a well dressed Datuk-looking person.

    The ePetrol petrol kiosk is basically a way to pay for your petrol via the MyKad. You first link your MyKad to your bank account (I assume it can be linked to a credit card as well if needed), then you use your MyKad to pay for petrol at the petrol station. The cash will be deducted from the bank account associated with your MyKad account.

    MyKad ePetrol

    The ePetrol team demonstrated a way that fuel subsidies could be controlled and given to Malaysians only. Basically, the petrol kiosk displays and charges the unsubsidised market price for petrol by default. When an ePetrol-enabled MyKad is inserted, the subsidised price will be available. The receipt shows both the unsubsidised price and the subsidy given.

    This is one of the possible implementations that could change the way we fill up our tanks in the future.

     
  • Subsidised petrol soon only for verified Malaysians

    Gas Prices

    According to Berita Minggu, Domestic Trade and Consumer Affairs Minister Dato’ Shahrir Samad says Malaysians may soon have to present their identity cards at petrol stations before being able to fill up their fuel tanks with subsidised petrol. Everyone else would have to pay an unsubsidised market price for petrol.

    One way of implementing this could be enabling the credit card readers at kiosks to verify that a valid MyKad has been inserted into the reader as all of the readers have been updated to accept and read chip-based cards some time ago, but this could be prone to abuse. The other way would be having manual verification by petrol kiosk attendants, though this would be a slight annoyance to motorists wanting to refuel quickly and go, but it would be a small price to pay to get subsidised prices.

    In another report, former PM Tun Dr Mahathir claimed that at the current rate Malaysia would not be able to afford any form of petrol subsidy by 2014.

    Source

     
  • New diesel subsidy plan to be implemented soon

    Diesel DMAX

    The government has opened a Request for Proposal to all quarters for suggestions on how to implement a more suitable diesel subsidy scheme that is more effective in preventing abuse and wastage, according to Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad.

    The government will then announce the new subsidy plan in about 6 weeks time, with implementation to take effect in 6 months time. It seems that if the newly implemented diesel subsidy plan is found to work well, a similiar one will be cooked up for petrol subsidies as well, so both users of petrol and diesel vehicles should brace for some big changes in the next few months up to the next 2 years.

    Any good ideas?

    Related Posts:
    Diesel at pump may have subsidy removed!
    Proposal for new fuel structure: subsidised RON95 and unsubsidised RON99

    Source

     
  • Diesel at pump may have subsidy removed!

    Mitsubishi Triton

    We may soon see the death of the trend of private registration consumer diesel cars and trucks in Malaysia! This is because if everything goes as intended, diesel at the pump will soon be unsubsidised, with the government looking at alternative ways to deliver subsidies to those that they deem needy. Diesel at the petrol pump is now RM1.581 per litre. With the subsidies taken off, it is expected to cost more than RM2 per litre. This may kill the sales of popular lifestyle trucks which are driven by consumer purchases, while the business workhorses will probably not be affected as much.

    At this point it is not clear which exactly parties the government will continue to subsidise, but according to Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad it would include school buses, the transport sector like buses and taxis, and other economic activities which the government deems require diesel subsidy.

    “We are looking at various ways to restructure the mechanism in providing the diesel subsidy as our first area of focus on subsidies. We will look at how to raise the price of diesel at the pumps to a non-subsidised price, and the subsidy to reach the target group instead. If the price is raised at the pumps, then there will be no smuggling of the commodity or abuse of the diesel subsidy,” said Datuk Shahrir.

    A salaryman who bought a 2.5 litre turbodiesel pickup truck in efforts to save on his monthly fuel bill by trying to make up for the more expensive road tax with the monthly savings in fuel expenditure could end up being on the losing end in this deal. Together with the recently reported bad crash test results with pick-up trucks in general, we may see the popularity of pickups diminish significantly.

    But with the ability of diesel engines to usually extract more kilometers out of each litre of fuel, it may continue to be popular, just not as wallet-friendly as before. We will just have to wait and see what the market price is if this proposed plan is put in place.

    Source, Source 2

     
  • Research Octane Number: What is RON95?

    petronas_450.jpg

    You might have seen numbers like RON97 and RON92 at your neighborhood petrol station. Fuel with a RON97 rating is more expensive, RM1.92 per litre at time of writing with the lower RON92 rating going for RM1.88. Have you ever wondered what they mean? Why is RON97 more expensive than RON92, and can you use RON92 to save on fuel costs? Let’s have a discussion. What petrol do you use regularly, and why do you like your choice of petrol? Or are they all the same to you?

    RON97, RON92, who is this RON person?

    You might have seen numbers like RON97 and RON92 at your neighborhood petrol station. Fuel with a RON97 rating is more expensive, RM1.92 per litre at time of writing with the lower RON92 rating going for RM1.88. Have you ever wondered what they mean? Why is RON97 more expensive than RON92, and can you use RON92 to save on fuel costs?

    RON stands for Research Octane Number, a rating used to measure a fuels knocking resistance in spark-ignition internal combustion engines. Before we attempt to understand this mumbo-jumbo, we have to know what knocking is. Knocking is what happens when parts or all of the air-fuel mixture prematurely ignites before the flame from the spark plug can reach it. This can be caused by ignition timing that is too early or engine overheating, where the heat from the cylinder itself causes the mixture to combust before the spark plug can burn the mixture. This causes a decrease in performance and might also harm the engine.

    It is a misunderstanding to think that RON97 fuels produce more power than RON92 fuels, even more so with the fact that in reality a higher RON number means the fuel burns less easily! RON refers to the ability of the fuel to resist knocking and nothing else.

    By pumping the RON97 into a car which engine only requires the RON92, all you’re going to get is an emptier wallet – that hardly counts for performance gains via weight reduction! :P

    Engines are designed to have a minimum RON rating for its fuel. Do check your service manual for the minimum RON rating that it requires. For engines that require a minimum of RON92, you might as well pump RON92 fuel and save abit of money since RON92 is cheaper by 4 cents per litre. Another common minimum RON rating is RON95, but since we do not have RON95 fuel in our market, we have to use RON97 fuel for the engine. These engines normally have higher compression ratios, like the one found in the Satria GTI so it needs higher knock resistance to withstand higher compression.

    If you find that your engine can use RON92 petrol and decide to save abit of money, do check out if a petrol stations RON92 petrol is leaded or unleaded. All RON97 petrol is unleaded, but some RON92 petrol might be leaded although this is very very rare. Buy me a teh tarik with the money you save, thanks! :)

     
 
 
 
 

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