Home / Special Coverage / Malaysian Fuel Prices (Page 3)

  • CONFIRMED: RON95 and diesel up by RM0.05 at midnight

    In Malaysian Fuel Prices / By / / 466 comments

    Fuel-Wallet GaugeIt’s confirmed – the government (via the Prime Minister’s Office) have decided to increase the price of various items in the country via the reduction of subsidy. These subsidy cuts are supposed to save the government RM750 million a year. The government claims that even after these cuts it will continue to spend about RM7.82 billion a year on fuel and sugar subsidies.

    Word is that this is just the first in a round of many more subsidy cuts to come, which means the government has implemented some kind of incremental subsidy reduction plan similar to Idris Jala’s proposed PEMANDU plan.

    • RON95 petrol price will increase by RM0.05 to RM1.85.
    • RON97 petrol will be put on a ‘controlled float’. I’m not sure what the price will be after midnight. Will it be up by RM0.05 to RM2.10 per litre or will it go up by a larger margin?
    • Diesel will go up by RM0.05 as well, which means the diesel price that you and me will be able to get at the pump will be RM1.75 per litre. However the government also says the RM0.05 hike is for all sectors so fishermen and etc will feel the hike as well.
    • LPG Natural Gas will go up by RM0.10 to RM1.85 per kg.
    • Sugar will go up by RM0.25 per kg to RM1.75.

    Seriously guys, based on an average full tank of 50 litres, you’re only going to save RM2.50 if you rush to the pumps to fill your motor vehicle up today. It’s not worth it, please don’t clog up the fuel pumps and the roads around the pumps and make the roads a living hell for less calculative motorists!

     

  • Mkini reports petrol and diesel to go up RM0.05 tonight?

    In Malaysian Fuel Prices / By / / 99 comments

    Fuel-Wallet GaugeAccording to Malaysiakini, both petrol and diesel prices will go up by RM0.05 effective midnight tonight. That’s pretty much all their brief news piece says, but if all three types of fuel are hiked that would mean new prices of RM1.85 per litre for RON95, RM2.10 per litre for regulated RON97 and RM1.75 per litre for Euro 2M diesel.

    Just as a recap, here is Idris Jala’s proposed plan to cut down on fuel subsidies in Malaysia as part of the PEMANDU think tank project:
    Read more ›

     

  • Government think tank proposes fuel hikes – 15 sen this year and RON95 to cost RM2.60 by 2015

    In Malaysian Fuel Prices / By / / 641 comments

    Fuel-Wallet GaugePEMANDU, a government think tank led by Minister in Prime Minister’s Department Idris Jala tasked with formulating proposals to reduce the country’s government subsidy budget has recommended a petrol price hike of 15 sen for RON95 and 10 sen for diesel.

    This is the petrol price hike schedule which we’ll be looking at, based on a crude oil forecast of US$73.06 per barrel in 2011 and the region of between US$79.41 to US$94.52 per barrel between 2013 and 2015.

    • Current 2010 Price – RM1.80 per litre RON95
    • Q3/Q4 2010 Price Hike – RM1.95 per litre RON95
    • 2011 Price Hike – RM2.16 per litre RON95 (broken into 2 hikes, once per 6 months)
    • 2012 Price Hike – RM2.20 per litre RON95
    • 2013 Price Hike – RM2.34 per litre RON95
    • 2014 Price Hike – RM2.52 per litre RON95
    • 2015 Price Hike – RM2.60 per litre RON95

    These are just the proposed hikes for RON95. RON97 was not mentioned in the recommendations, which indicates that the government is further decreasing priority on RON97 subsidies. We could see a price of way over RM3 per litre for RON97 by 2015.

    Not only that, the proposal recommends that the government renegotiate the PLUS toll concession contract this year and the LDP contract by 2013, then all toll concession agreements must proceed without any subsidies, resulting in a toll hike of between 10% to 67% depending on the highway, distance, etc from this year onwards.

    For those dreaming of a future of driving electric cars, electricity tariffs are to be untouched for those using less than 200 kWh for this year. However gas prices are proposed to be increased by RM3/MMBTU every 6 months, which will translate to an electricity increased of 1.6 sen/kWh every 6 months. If we take the Nissan Leaf’s 24kWh battery as an example, that’s a RM0.38 hike per full charge for the Nissan Leaf every 6 months. LPG, which is priced at RM24.50 has been proposed to be hiked to RM27 with a 20% price increase every year.

    The proposal also spells out a “mitigation plan” which involves giving cash rebates of 126 ringgit for owners of cars with engines smaller than 1,000cc in capacity, and 54 ringgit for owners of small motorcycles. My reference source doesn’t mention of this is one time, monthly, or yearly. There is also a proposal for a 20% discount on toll charges for frequent users and a cash rebate of RM20 for anyone with a Malaysian IC – not sure what this cash rebate is for but I’m assuming it’s for fuel?

    According to PEMANDU this will save the government about 3 billion ringgit this year, 14 billion ringgit next year, 21 billion ringgit in 2012, 29.5 billion ringgit in 2013 and 35 billion ringgit in 2014. These plans are yet to be approved by the government.

    Source

     

  • It’s official – tiered fuel subsidy system scrapped!

    In Malaysian Fuel Prices / By / / 110 comments

    Fuel-Wallet GaugeThere were very strong rumors and unnamed sources before this in the papers but now it’s official – the tiered fuel subsidy plan has been scrapped! Domestic Trade, Cooperative and Consu­merism Minister Datuk Seri Ismail Sabri Yaakob made the announcement today and also said that there would be no increase in fuel prices for now. I think that we’re going to see is the fuel price being raised slowly and slowly to let us slowly get used to unsubsidized fuel prices.

    The highest fuel price we’ve had to endure so far has been RM2.70 per litre for RON97 fuel and RM3.15 per litre for Shell V-Power. This was between the 5th of June 2008 to the 23rd of August 2008. However, there was also a RM625 fixed fuel subsidy issued through Pos Malaysia during that period. You could claim the money when you renewed your road tax. Petrol prices remained high throughout most of the second half of 2008 but was slowly reduced during that period until it settled down to the current prices of under RM2 per litre in December 2008.

    Source

     

  • May 1st Tiered Fuel Subsidy System Scrapped?

    In Malaysian Fuel Prices / By / / 130 comments

    Fuel Wallet GaugeIt looks like we might not need to worry about May 1st after all. Apparently the complicated (and likely expensive) tiered subsidy structure that we’ve been scratching our heads over has just been scrapped. The Malaysian Insider cites sources within Putrajaya in reporting this good news, and apparently the decision was only made ‘recently’.

    It must have been very recent as just less than a week ago, the Domestic Trade Minister said he would be revealing the system’s details in March and that we would be very happy about it – perhaps what he means it that it was scrapped in favor for a simpler system!

    But according to the report we still might see a small price hike of 10 sen before the first half of this year. The current price structure of RM1.80 per litre for RON95 and RM2.05 per litre for RON97 was introduced on the 1st of September 2009 and at that time crude oil was US$72.75 a barrel. Crude oil now goes for US$79.11 per barrel – which represents about an 8% hike. It had previously breached US$84 per barrel in January. A proportionate 8% hike in RON95 prices would be about 15 sen – so a hike of 10 sen would be actually less than the 8% hike in crude oil prices.

    The thing is, I’m not sure if we have more time now or if there is another simpler and more cost effective subsidy system in the works to be implemented by May 1st. OR worse case scenario, the government reverses its decision again and decides to go ahead with the tiered system. Unless something comes out from the relevant ministry of the Prime Minister’s Office, we’re never going to know for sure. Seriously – it seems that most of the time we just don’t know for sure whenever it comes to policies. Either way, it would still be wise to take a look at our fuel expenditure and the kind of vehicles we use to ones that are more efficient and frugal.

    We should be prepared for the day when the government eventually pulls the plug on subsidies here in Malaysia. Hopefully by then the economy would have progressed to a point where we can actually afford the unsubsidized prices without issues.

     

  • How much fuel do you consume a month?

    In Malaysian Fuel Prices / By / / 139 comments

    Fuel Wallet GaugeThe 1st May new fuel subsidy system expected to be announced in March this year will likely involve those who qualify for subsidies only having a certain amount of litres of subsidised fuel a month. If you use beyond that allocated amount, you will have to pay the full price for your fuel.

    The amount of litres to be given is said to be between 200 to 300 litres per vehicle and if you have multiple vehicles, you will only get 1 car’s worth of subsidised fuel. I think it would be interesting to set up a poll and see how much of fuel you use every month.

    I easily refill my car about 6 to 7 times a month or more because I travel alot, and each refill is about 65 litres. That would peg my usage at about 400 to 450 litres per month, which means if I qualify for the full 300 litres of subsidy (hypothetically), I would have to pay the full price for my remaining 150 litres of fuel.

    Assuming a subsidy of 50 sen per litre – that’s about RM75 extra a month. But then of course, since there is word that engine capacity is going to be taken into consideration, even though my daily driver’s engine capacity is of less than 2,000cc, because I own an old E30 with a 2.5 litre engine that I want to restore, I will probably not qualify for any subsidies.

    What’s your story? Share your petrol/diesel consumption pattern with all of us here, and perhaps with luck some relevant people in the ministry can observe your comments and it can be taken into consideration. Let’s try to be constructive as well as keep to the topic for this particular post’s comments.

    So – how much fuel in terms of litres do you consume a month? Do you expect that you’ll qualify for subsidies? Vote in the poll below and share your story in the comments section.

     

  • Details on May 1st new fuel subsidy system to be revealed in March 2010

    In Local News, Malaysian Fuel Prices / By / / 154 comments

    Fuel Wallet GaugeThis is the silver lining in a dark cloud. According to Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob, we will know the details of the new fuel subsidy mechanism in March 2010, ahead of the system’s expected implementation date in May 2010.

    Although most of us dread the thought of having to pay more for fuel soon (and with more hassle as well), at least now we will have a one to two month head start to planning our finances instead of only knowing at the very last minute.

    Datuk Seri Ismail declined to provide any details (in an interview with NST), but he did say that it would make people happy. I am hoping that this could indicate a fair system that would not trouble the low to middle class income earners. Let’s hope the government has not been out of touch with the reality of things on the streets in formulating this new subsidy system, otherwise it will indeed be a bitter year of the tiger for us.

    What we know so far is that foreigners (even those who consider Malaysia their home and work here with local and not typical expat level of salary) would definitely not get any subsidies because they will not hold the MyKad, which is said to be a key element in how the system works. Your MyKad will identify you (a newspaper report has even cited you need a thumbprint scan like at the airport with your passport or with your MyKad at the bank) and how much of subsidies you are eligible to get.

    The system is said to be managed by Maybank, the first time this has been revealed in the newspapers, though I’ve heard rumors of this for months. A pilot project to test out the system will go live sometime in end March or perhaps April – a rather short test time for a large scale nationwide roll-out of a new system!

    You could get between 200 to 300 litres of subsidies per month depending on various factors such as socio-economic and the dreaded engine capacity factor. The threshold is said to be 2,000cc – and I would be able to get pass this number if not for the 2.5 litre old E30 which I purchased for just over RM10k recently. This probably means zero subsidy for me. Company cars are said to be not eligible for the subsidy. Once you run out of subsidised litres per month, you will have to pay full price, which is expected to be RM2.10 per litre for RON95.

    Even for those who qualify for the litre amount of subsidies that they need every month, they will not likely to continue paying the RM1.80 per litre for RON95 and RM2.05 per litre for RON97 we are paying right now. Sin Chew Daily reports that the government is expected to announce a new subsidized price of RM1.90 per litre for RON95 and RM1.80 per litre for Euro 2M diesel. Nothing was said about RON97, so that can either be a very good thing or a very bad thing! But I have a feeling there will not be any ‘subsidised’ option for RON97. If unsubsidised RON95 is RM2.10 per litre, unsubsidised RON97 might touch RM2.50 per litre!

    Whatever it is, we’ll know the full details next month, if the minister keeps true to his word, and hopefully we’ll be happy. The March announcement date may coincide with a ‘registration exercise’ as mentioned in newspaper reports previously.
    Read more ›

     

  • New updates on May 1st fuel subsidy system

    In Malaysian Fuel Prices / By / / 137 comments

    Fuel Wallet GaugeWe really don’t know much about what to expect on the 1st of May 2010 except for speculation so far, but now it looks like Sin Chew has some details according to an unnamed source. Here is a summary:

    • Some kind of ‘registration exercise’ will begin in March in preparation for the new system’s implementation on the 1st of May. Maybe the government has changed their mind and will reveal our new nightmare two months ahead instead of the night before?
    • Someone who owns multiple cars will only be eligible for subsidy worth for one car only.
    • Someone who does not own a car does not get any subsidy quota. This combined with the point above means that if you have a few cars registered under your name but used by someone else (your kids for example) you should probably quickly change ownership of your cars to their designated drivers.
    • If a car owner finishes his monthly subsidy quota, the person can continue to purchase fuel, but at unsubsidised market rates.
    • Quota is expected to be anything between 100 to 300 litres per month.
    • The government is considering removing the engine capacity variable from the formula that determines your monthly subsidy.

    Source

     

  • Some info on upcoming May 1st fuel pricing system unveiled, but much more details needed!

    In Malaysian Fuel Prices / By / / 88 comments

    Fuel Wallet GaugeGood news for those in East Malaysia – the way you buy your fuel and how much you pay for it will likely remain the same after the 1st of May 2010, while West Malaysians will have to adapt to a new and likely more expensive price structure.

    According to Domestic Trade and Co-operatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob in an interview with The Star, there are many people who have to use 4WD vehicles with large engines in East Malaysia because of the terrain so the new fuel pricing mechanism will only come into place later.

    From the interview, the matter of factoring in engine capacity in subsidy entitlement considerations sounds like a done deal, with the only thing left to be decided is what is the threshold of engine capacity before you go up a ‘price bracket’. The Minister also revealed that each person who owns a car will only get a subsidy (both in terms of price and litre quantity sense) for one car only, so if you are a parent and have a few cars in your household under your name for each of your kids you may want to start transferring the ownership to the actual user of the car.

    Interestingly, the Minister also revealed that the government has no plans to touch the diesel subsidy for the moment. But he did say that the ‘market price’ for our Euro 2M diesel right now is RM2.09 per litre. If you’re shopping in the premium executive car segment, it might be a good idea to go for either the 320d, the 520d and the 730Ld now depending on how deep your pockets are.

    For the rest of us who can only afford (relatively) everyday joe cars, there’s a new Ford Focus TDCi coming very soon so that might be a good idea as well.

    Read the full interview: Still in dark over system

     

  • New petrol subsidy system to factor in engine displacement size?

    In Malaysian Fuel Prices / By / / 192 comments

    Fuel Wallet GaugeNew details have been released on the new petrol pricing system that’s set to be implemented on the 1st of May this year. Apparently the different pricing systems will be applied based on “engine capacity” and “socio-economic” factors, though there was no specific numbers unveiled on what the thresholds are.

    While we have no details yet as of now on what the threshold of an increase petrol price will be but past government measures might give us a hint. When the price of petrol hit the roof back in 2008, the government announced that a RM625 one-time petrol subsidy would be given to cars with engine displacements of up to 2,000cc, trucks with engine displacements of up to 2,500cc and bikes of engine sizes up to 250cc. We might see these numbers used again for the new subsidy system.

    Cars with large engines are already being ‘punished’ with exponentially higher road tax charges but now owners of such cars will have to deal with the fuel prices as well.

    Make no mistake about it – with the trend of how things are going, the middle class are just going to be squeezed tighter and tighter. We’ve got to deal with pricier petrol, GST, and many others. You had better plan your finances and monthly budgets for the worse this year, as I don’t think we are going to get any indication of what we are going to face until the last minute. The same report unveiled that details would only be announced on the very day of implementation.

    Source

     
 
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