The formula used to calculate the price of fuel is called the Automatic Pricing Mechanism (in place since 1983) and its function is to stabilize the price of petrol and diesel in the country to a certain extent, via a variable amount sales tax and subsidy, so the retail price only has to be changed if the difference in price exceeds the threshold of the tax and subsidy, at the discretion of the government.
This is how the price of petrol and diesel at the pump is calculated in Malaysia.
In the table above, you can see that the Cost Of Product is not derived from the price of Crude Oil on the NYMEX, but it is based on the Mean of Platts Singapore (MOPS). The cost is the already refined product, which means the refinery cost are already included and indexed in the MOPS.
You may ask what exactly is the MOPS? Many countries in this region base their fuel prices on the MOPS, including alot of ASEAN countries and even Australia.
The index is tracked, assessed and updated by Platts, a McGraw-Hill company in Singapore and is based on the daily average of all trading transactions between buyer and seller of petroleum-based products.
A buyer of a finished (refined) oil product will refer to the MOPS index as a better indicator/benchmark of world prices rather than crude oil prices. The MOPS price typically has a premium over the crude oil prices. This is why the Malaysian government uses MOPS to determine fuel prices rather than NYMEX crude oil prices. Unfortunately it is hard to track MOPS prices as individuals because the data is only available to those who purchase it, unlike the publicly available charts from the NYMEX.
Next up is “Alpha”, which is fixed at 5 sen per litre for petrol and 4 sen per litre for diesel. This is sort of a buffer for the oil companies. If the price of the product that the oil companies buy is higher than the MOPS published price, and the difference is higher than Alpha, the oil company will bear the extra cost, and vice versa.
Operational costs should be self explanatory. They are set at 9.54 sen per litre, 8.98 sen per litre and 8.13 sen per litre for the Peninsular, Sabah and Sarawak respectively. Operational costs cover transport and marketing costs.
Then comes where the oil companies make money, which is set at 5 sen per litre for petrol and 2.25 sen per litre for diesel.
The stations make more money per litre of petrol – 15 sen per liter for petrol and 10 sen per liter for diesel. UPDATE: This used to be less – 12.19 sen per litre for petrol and 7 sen per litre for diesel, but it was revised to the new rates in 2019 under the Tun Mahathir cabinet.
Sales tax and subsidies are combined. According to the Sales Tax Act 1972 (this is not something new!), the government CAN collect a maximum sales tax of 58.62 sen per litre for petrol and 19.64 sen per litre for diesel. This comes into effect when the real price of petrol and diesel at the pumps are lower than the fixed retail price. The government can pocket this, or it can revise the fixed fuel price to be lower to remove the difference in price so the savings go into the rakyat’s pocket.
On the other hand, if the fixed retail price is lower than the actual cost of the petrol and diesel at the pumps, the government can pay a subsidy of the same range. Right now the government says it will give a maximum subsidy of 30 sen per litre instead of the maximum allowable subsidy of 58.62 sen per litre, IF NEEDED.
This 30 sen maximum subsidy is as part of an improved Automatic Pricing Mechanism, which the Ismail Ahmad says is designed to stabilize fuel retail prices and allow industry players to manage expenditure in a more orderly manner.
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It seem their calculation scheme preety well……. But still sounds fishy !!!
all the the govt do are fishy
This is funny… Only two comments in here.
this is simply too technical for us layman, perhaps that is the reason for releasing it since nobody will fully understand it.
whatever gov does always look fishy to you people, grow up guys!! if you think you know better, why don't come out with a solution/alternative?
It's not that it's too technical. It ends up we cannot count it ourselves because we do not have access to MOPS data!
MOPS data as mentioned is used by several countries in the region so it is constant. If other neighbouring countries can drop fuel price after the decline, which means that the only thing that keeps our fuel price high is the sales tax.
MOPO is Singapore based, so we know how weak our RM compared to SGD recently…
I dont care what mechanism they use..
BUT we all only want the IDIOT G to reduce the price when oil price fall like hell;
That is the only concern for RAKYAT especially on this economy crisis!!!!
They only Know how to campare OIL price wif SINGAPORE but there DIDNT even have A DROP OF OIL. This is the stupid G people have now.
kimi_
I really agreed with you.Should be this idiot G lower the fuel price instead taking our tax money to funding next coming election in Perak
if the price of the product that the oil companies buy is lower than the MOPS published price, then oil co makes additional 5 sen?
and the Operational costs also paid to oil co. right?
then oil co margin is about 19.54 for petrol and 15.79 for diesel.
Surely they should be able to give better offer to consumers if he pump price remains the same.
Regretted, frustrated.. with our G. Always try to fool rakyat :(
the APM is really IDIOT !!
If u count the petrol at anywhere else, just change the petrol per barrel in usd to RM and divide it by 159 litres .. and u will get the end price ..
But from wad i have count, we pay RM1 more than other countries ..
which means that malaysian are buying the most expensive petrol in the whole world although malaysia is a net petrol exporter ..
how idiotic is that .. ??
after last year increased fuel price, many items had gone up also… but until now, not much hand drop their price… just cant believe that even crude oil had drop price due to demand but other items still haven't decrease price as they are using oil price high to increase price before hand…
from stationery to toys, from clothing till toiletries items… consumer can find many of these still carry the same price tag and some even increased 5%-10%…
many know that when our minister bringing down items price tag from hypers, many consumer can guess what's next… we consumer, rakyat are watching…
based on current crude oil price at $37/barrel……. cost per litre will be $0.23. convert to our currency at 3.6/usd will be RM0.83 per litre?
Now we add all the cost above
alpha – RM0.05
o/cost – RM0.0954
oil co margin – RM0.05
dealer margin – RM0.1219
gomen tax – RM0.5862
Total = RM0.9035
So, RM0.83+RM0.9035
=RM1.7335 —– Still below current price?
From the above calculation we also know… who is the culprit that caused high petrol price.. its The G… 58sen per litre? then some more collect royalty, company tax…. not enuff? raised toll rate, dont want to reduce electric tariff..
Well, so lucky you are still in power
Since when the oil price dropped to USD37/bbl?
Feb 16, 2009 at 6:47 am
You forget the MOPS
FYI, you don’t pump crude oil from the petrol station, so that is not the price you should be looking at.
Crude Price is unprocessed Oil price. After going through distillation and processing, with other costs involved, it’ll be higher.
hahaha…hmm…i dunno whats wrong with malaysians…related to G = fishy…everytime…i agree with zimmern….grow up ppl….in a way its good, if they sell it cheap…we will waste em…and also bad for the environment…so if u cant afford…limit the usage…and save the world in the process lol
are u retarded or stupid minded? Grow up please and use your brain to think, not your back!! This G is full
of culprit and he has a wife who has been saving money even 10 lifes before she was born and u call this G good?
Look at the historical prices of Malaysia’s petrol. When crude oil was more than $100 per barrel, our oil price was RM2,++; now less $100, say $60+ per barrel, our oil price is RM1.93. Don’t tell me it was the weak RM that caused it, it is totally BS, u dumb donkey head!!!!
Since d petrol price hike last year i hv totally lost confidence & trust to our g.
Total mess has been done to our economy with prices of goods still high & not doing much about it. Dont be suprise if d fuel price would stay as it is eventough d world oil price still down coz they definately would make stupid xcuses like they did b4 to increased fuel price.
I remember one stupid ppl from g saying stupid stuff like setting a FLOOR
PRICE 4 d petrol price which i think thats what they r trying to do now.
What ever they wanna do we cannot do anything about it & they still wanna b
the g eventough we didnt vote for them.
i trust my BN government. at least they show us the calculation. not like pakatan. They said they are transparent, but neither of them declaring their stakes, money in the bank, their wealth to others. zzzz.. they said open tender, but the camry direct buy maa…
the government wont decrease any futher is just becoz the government want us to use our HEAD. Budget urself, Share Car with others, use only when needed, Use Public transport, Dun blame the government if the price does not reduce. Blame urself that being selfish, using too much fossils and doesnt appreciate what ppl bring for u in this country. Try to live in singapore la if u really think that this government is not good. try buy the petrol there and i wanna see if u can survive there. The taxes – oil, car, road (the tax can buy another car in malaysia), house, income tax, CPF, medisave, the hospital bill that my father paid even for simple FBC is S$7.
Dont bluffing too much. If u want argue, give FACTS. Dun give other person bad perception of the government.
Do not try to ask some one to live in oversea if he/she dislike the government, remember government not = our country*
base on iskandar calculation
crude oil price at $37/barrel……. cost per litre will be $0.23. convert to our currency at 3.6/usd will be RM0.83 per litre?
Now we add all the cost above
alpha – RM0.05
o/cost – RM0.0954
oil co margin – RM0.05
dealer margin – RM0.1219
gomen tax – RM0.5862
Total = RM0.9035
So, RM0.83+RM0.9035
=RM1.7335
Read more: http://paultan.org/2009/02/15/how-fuel-prices-are-calculated-in-malaysia/#ixzz3KkbaXp70
Crude oil is not equal to petrol, you need to refine it to get all the components, that’s how you derive MOPS after including the refinery cost
dont talk about public transport dude. totally bs….. the fact is…. our petrol price is expensive… more expensive than the US.
If you want to compare us with Singapore… come per-capita income first.
Really? last time i was there, they cost like 1 ringgit more.
hmm…malaysians should try and live a few years away from here and experience how its like living in other countries…like most of the people i do complaint alot about malaysia's policy blablabla…but once you're out there, you will start to appreciate your country even more, im speaking base on my experience and those who went thru the same thing (i used to live in australia and japan for the record, i remember paying something like, rm 40 just for using a 10km highway in japan, u cant drive your car like u can here without paying extra)…the thing is, we malaysian are spoon fed long enough…a bit of change, increase in this and that will result in loud noises, too comfortable…rakyat this rakyat that…arguments like malaysia is a net exporter is very weak…we're a develop nation, we need money to develop our country…if all the crude oil should be sold to malaysians at super cheap price just to make the rakyat comfortable, that will surely affect the country's income…
malaysian tends to look at bad side of things…our government increased the price last year, yes (i was furious as well), but did anyone point out that they provide us with the cash rebate to ease our burden? and not long after that prices dropped to the lowest point in many years…we are made to suffer for a few months only….i bet they lose alot of money by doing that…i see ppl buy new hps and laptops and other unnecessary stuff with those money…the point is, we dunno how to manage our income…y not let the government collect some taxes while they can? prices might go up in the future, with the money they collect now, they probably can build up enough reserve to save our asses by then? who knows…lol…i know ppl will say that whatever the government is doing will fill some ppl's pocket…now tell me…where in this world can you find a country that its government is corruption free? if you have one in mind…why dont go and live there? simple isnt it?
wanna increase per-capita income? be proactive and productive instead of sit and vent about your frustrations, i bet that will help the country move forward…just my 2 cents =)
The Point you say here
1.we’re a develop nation, we need money to develop our country…
Which part are developing now? MRT?(ONLY)?
2.if all the crude oil should be sold to malaysians at super cheap price just to make the rakyat comfortable, that will surely affect the country’s income…
Comfortable is not good? you want to be suffer? can you explain to me how comfortable can affect country income?
3. but did anyone point out that they provide us with the cash rebate to ease our burden?
Did you go Sabah before? I am Sabahan, all cash rebate are taken by foreigner which is holding with REAL MYCARD… are this is fair? and the money rebate to us they provide each times a year, and can help us on what in this one year?
4.and not long after that prices dropped to the lowest point in many years…we are made to suffer for a few months only
hahaha……..funny, how you know the price will drop? and how you know is few month? are you BN?
5.i see ppl buy new hps and laptops and other unnecessary stuff with those money…
You see ppl, all u see is those rich ppl. Did you go to see the poor side?
6.prices might go up in the future, with the money they collect now, they probably can build up enough reserve to save our asses by then?
Did we experience before our government take our money to build for our future to help us?
7.where in this world can you find a country that its government is corruption free? if you have one in mind…why dont go and live there? simple isnt it?
Yes, every country also have corruption, but you know Malaysia is top 10 ranking in the corruption?
So obviously you are same with the ppl which saying… “BALIK CHINA la” am I right?
The rakyat has lost confidence in their gomen thats why more negative than positive comments. How can ismail ahmad from the gomen claims operator could go bankrupt because of 30 to 40k liter stockpile?
The gomen use idiots to do the job but the rakyats are no idiots!
Petrol station deals with cash which can come from line of credits. If they don’t sell their stocks (petrol/diesel), they won’t have money to pay the banks. Simple enough maths. Look at the margin they receive and calculate the overheads, unless you’re at a prime location, you could suffer – that’s why some will purposedly turn off their credit card facility to get cash instead (and more profit since they don’t have to pay commission to the banks)
No have enough Cash/ Money better shut down the petrol station(business). This is business, if they unable to make a profit, what i can say is none of our business. Business need location, strategic, marketing and etc.
Pity ‘u’…i was living in uk..it was very expensive living..even need 20¢ to pump tire..as our minister said..1L petrol cost u £1..very costly..indeed
minyak kat jakarta pun harga rm1.50..lagi murah lol
i strongly agree with trinity.. we, malaysians are spoilt by our own government, and when changes are being made, all we do is complain..
kimi_ said,
February 15, 2009 @ 8:20 pm
I dont care what mechanism they use..
BUT we all only want the IDIOT G to reduce the price when oil price fall like hell;
That is the only concern for RAKYAT especially on this economy crisis!!!!
cakap so thats your only concern? for you to live comfortably? how selfish..
*correction…developing nation =P
menawan said,
i trust my BN government. at least they show us the calculation. not like pakatan. They said they are transparent, but neither of them declaring their stakes, money in the bank, their wealth to others. zzzz.. they said open tender, but the camry direct buy maa…
—————————————————————
I know u are shahrir or his assistant,right? hehe:)
emm… i agree with what u said, trinity. but we do not make a noise, the G will think that all rakyat are dumb and starting to do whatever they like. Now at least they know many eyesss are watching them!!
cd.subaru, make noise can…but at least make intelligent noiselah, give suggestion on how to combat the problem…not stupid drivel like oh G stupid, rakyat must have everything, things like that
dont talk about public transport dude. totally bs….. the fact is…. our petrol price is expensive… more expensive than the US.
If you want to compare us with Singapore… come per-capita income first.
______________________________________________________________________________
see, as i said, u need to have a facts. Dun simply said without facts. Public transport is a choice. That's y the PM is develop a new system that can upgrade the image of the public transport. as i live in JB, the public transports are now efficient unlike 5 years back. In KL we already have Rapid KL and Penang we also have RapidPenang. Of coz all new things comes with many loops hole. at least they start on something, and its for us to overcome and tackle the issues and makes the public transport better. Other place is still developing. So the next 5 years we should see the result of using the saving subsidise money for oil.
My family is a singaporean. My parents income is $3000 per months and that not yet minus all the tax that i mention above. just live with the salary in singapore and u will know. and summore the economic downturn, my father almost lose his job. U cant live there. Even the bread, Rice, and all gross food are EXPENSIVE. Now we live in Malaysia. exchange rate is about 2.4. Monthly about RM6000. see how many things we can buy in Malaysia. Cheap food, rice, bread, OIL. Even singaporean doing shopping here.
I wont argue anymore as i think that more comments will up blasting me. Thus this msg is the last. Just think about it. appreciate and be thankful for what u have because this happiness wont last long
How many % of our population is earning 6k? 3k MYR won’t be enough for living in malaysia either.
menawan,
you are self contradicting, there is really no need to argue anything with you.
"Try to live in singapore la if u really think that this government is not good."
LOL, try to work in malaysia and live in malaysia then.
in some way, i support menawan.
though this is not the most perfect govt, i doubt it PR will do any better. just look at the 4 states controlled by them, i didnt see much improvement after almost 1 yr (other than free monthly water bill, which saves me a paltry RM5 p/m kekekeke). and im sure these 4 states will blame the Fed govt of any of their shortcomings…. no fed assistance lah bla bla bla.
just like in many formulae, since this is an automatic mechanism (APM), i can use one parameter in the equation to fill up my pocket. The resultant will fluctuate based on my pocket's need.
menawan,
Gotta agree with u. Life in SG must be very tough now that you're in recession. I was just a std 4 kid when recession hit Msia back in 1997, I was too young to understand many things, bt I know that when a country is in recession, it's bad. Really bad.
Bt to be fair, I think its not an excuse for us to allow the govt to slack off n do as they like. Accountability is the element needed here.
I've been to Jakarta n Bandung recently, from what I see, Indonesia gets cheap japmobile (avanza cost ard rm44k++ there), n slightly cheaper petrol there, but do I love it more than Msia? No, hujan batu is better to me :)
The govt should look into overall prospective before making any decision… not just blindly increase the price of petrol. Consider those who work at factory with small income. they are suffered the most. not only have to bear high petrol price, but also cost of necessity product.
When the G increase petrol price last year, all this necessity product price increase like never want to stop increase. Why this happened? its simply because this stupid G idiot increase the price by 78sen. Why dont the G increased it like they reduce the price now? Now Crude price has dropped about 70%.. then drop la petrol price by 70%. Its simple culculation in the end. We produce the crude, then our price should be lower than those who import like singapore and US. Simple logic isnt it?
I really love malaysia, but this people who run it never wanted to understand. Only after the exonomy turn very bad (maybe not long from now!) they will reduce the price.. But i tell you what, it will be too late. Damage has been done. Act now!
The problem is the G never speak the truth, they always saying fishy thing, they always turn everything around so that everything look right to the people. but the rakyat ain't stupid. They increase the petrol and giving back the rebate that the stupid idea I ever see. Wonder how they can made such decision.. ? Shouldn't they make really deep study before doing it? I personally have lost confident with our G, with all those fishy people around but I also have no confident with the opposite party that they can manage the country very well though. :(
Hi Paul,
Perhaps you can request for a free trial and get some of the MOPS data? Since you are high-profile enough, they may give you a free trial account… :) It will be interesting to see if the calculations given above matches what we are paying now at RM1.80/liter
http://www.platts.com/Oil/Newsletters%20&%20R…
zimmern,
My only solution is the ballot box…if you know what i mean. hehe
we are net petrol exporter, our facilities sux, our salary dropped and now we are paying 60sen for our petrol tax…
go to hell, G
Ayoooo…. sammy… why lah blasting everything to the G, I read all the comment but I don't see anyone given any proactive or solution to overcome this problem.. I watched Martha Steward and there is a best quote from her… Go to your boss with a Solution not with a question?
So Sendiri Mau Ingat lah
Happy driving……
Ps.. minyak naik ke turun ker tetap ppl do the drag racing lah
Mau atau tak mau
menawan said,
The government wont decrease any futher is just becoz the government want us to use our HEAD. Budget urself, Share Car with others, use only when needed, Use Public transport, Dun blame the government if the price does not reduce. Blame urself that being selfish, using too much fossils and doesnt appreciate what ppl bring for u in this country.
______________________________________________________________________________
menawan said,
see, as i said, u need to have a facts. Dun simply said without facts. Public transport is a choice. That’s y the PM is develop a new system that can upgrade the image of the public transport. as i live in JB, the public transports are now efficient unlike 5 years back. In KL we already have Rapid KL and Penang we also have RapidPenang. Of coz all new things comes with many loops hole. at least they start on something, and its for us to overcome and tackle the issues and makes the public transport better. Other place is still developing. So the next 5 years we should see the result of using the saving subsidise money for oil.
My family is a singaporean. My parents income is $3000 per months and that not yet minus all the tax that i mention above. just live with the salary in singapore and u will know. and summore the economic downturn, my father almost lose his job. U cant live there. Even the bread, Rice, and all gross food are EXPENSIVE. Now we live in Malaysia. exchange rate is about 2.4. Monthly about RM6000. see how many things we can buy in Malaysia. Cheap food, rice, bread, OIL. Even singaporean doing shopping here.
I wont argue anymore as i think that more comments will up blasting me. Thus this msg is the last. Just think about it. appreciate and be thankful for what u have because this happiness wont last long
————————————————————-
totally agree with Menawan.. If we have a very good basis knowledge in Economics +Engineering + Management + Leadership, this wont be a big issue. Whatever the G do for rakyat, the opposition will say the G are trying to cheat rakyat.. The same thing will happen when the opposition become the G.. So, think about it… He he he!
For the record, I don't think the price of petrol is expensive.
But that said, if taken on a whole we Malaysians could have been much better if the country's riches have not be squandered. We have been blessed with plenty of natural resources, but we are still quite "poor" when it comes to PDI and purchasing power.
And for good reason, many of us believe the the present government has raped its riches for its own devices. The country belongs to the citizens, not to those in power.
Menawan,
Yes, the grass isn't always greener over the other side, but if you want to compare singapore, compare our purchasing power dollar on par. Then compare Singapore with no natural resources and us. Tell me that it doesn't paint a very dim picture of Malaysia.
For someone stating "FACTS", can't jsut simply convert singapore dollar by 2.4. Thats rubbish! If your parents are in malaysia they'd be earning RM$3000 or less. Lets see how far you'd get with a family income of RM$3000 if you are forced to buy a normal $60,000 national car because public transportation is non-existant.
I don't understand why you'd end up contradicting yourself. Saying Malaysia is better than singapore, then state that singaporeans are coming over to shop. Look again at what you said, and see if Malaysians do go to singapore to Shop? the 2.4 exhange will kill us. So who's money is "bigger"? Who is more "well off"?
While no one will deny that corruption happens everywhere, it doesn't mean its ok to have it….and definately its not ok to have it so blatant.
I would also challenge you to show me that FDI outflow isn't a concern for you. Given uncompetitive and unclear policies (not to mention declining competitive advantage – look at our education system, basic wage rates for example), compromising FDI now for some politicians' short term gains will be detrimental to our future generations. Perhaps you might not feel this, but your children definately will.
Do you seriously think we are hopeing for a change in goverment will benefit us? Nope, but we are banking on the hope it will benefit our CHILDREN.
zimmern & raverus,
There wont b any solution at all coz u might not get what u vote for.
The new trend is HIP HOP FROGS song they r playing now, get it?
In d end we will b back to square 1, like nothing has changed.
For my conclusion, ALL would like to have price reduction which inline with FALLING oil price.
EXCEPT only for those BN people AND petrol DEALERS…..I know some commentors above are one of them!!!
Hello.. this is automotive blog not Politics.. I know someone up here is UMNO die hard friend which i confirm must be from UMNO strong hold = Johor.
Simple question: What is the currency of Singapore again us during 60's until now?
What do Singapore have compare to us? If you answer all this, you will be sure ashamed of your own country and have to went to Singapore to "earn" for SGD!
Have u ever wonder why we *normal folks cannot be like Brunei, UAE, Arab Saudi, US although we have so much high quality oil?!? Even the Middle East currency (Riyald?) is almost same but their salary paid is higher than Malaysia! Even my friend work as a nurse at Dubai earn almost RM10k!
Even the salary is high, but their tax is still less compare to us. They pay market price car, low price fuel or market price fuel and they live so easy live.. Have you wonder why we cannot? Well.. who control the wealth of this country and where all the money gone?
BN / Pakatan is nothing if the people did not support them. For someone up there, pls bring ur stupid A** to Perak and see, even the BN win but do they win over the people? i gonna bet my money that next election BN is gonna loss more votes thanks to some stupid move. Anyway where is your favorite Altantuya case showing? That simple case can already insult normal ppl intelligent some more with this? Show us the calculation with all the current oil crude world price.
When ppl do transparent project by doing open tender, you say they didnt do? Please check their website & see, for the Toyota case i think is not about tender. If want tender cheap car, why not buy Viva? I think sure win right? Super cheap car for MP. Just to remind you, Selangor BN ex-mb Toyo car = Mercedez S-class compare to current mb khalid = lexus harrier, which 1 expensive?
menawan, you obviously don't live in the real world if you say that "public transport" is a choice. Unless you want to wake up at 5.30 am everyday and be at the bus-stop by 6 am to get to work on time by 8.30 am.
Yes, I agree that many ppl do that, and I was also one of them for many years until I saved up to buy a second hand car because the price of a basic new car is almost 2 to 3 years the annual salary of a fresh graduate.
After many years in the rat race, I have learned that most Malaysians have no issues to pay market price for goods and services. If petrol price without subsidy is RM5 per litre, I will gladly pay for it, just make sure that the prirce of the cars, like the new Honda City is also market price without artifical taxes or excise, sell it for RM60K, why should we pay RM90K for that. With the RM30K savings, I can drive for many years without breaking the Bank.
Its time that we Malaysians get rid of the subsidy mentality. And by that, I mean all subsidies, including the NEP. I am ready 100% for it. Who here is also ready?
If the gov wants to practice real world pricing for fuel, then it should practice real world pricing for the vehicles that uses the fuel too.
But we have not seen this happening, and as a matter of fact the transport industry is actually shrinking. There are still 20 year old vehicles on the road burning fuel inefficiently.
Want to keep fuel prices up, at least let us own fuel efficient vehicles.
2 of the things that are essential to everyone is a roof to live under, and a vehicle to travel in/on. But this 2 things will keep you in debt for most of your life(to an average person) because they are 'artificially' expensive.
Keep the lawmakers being lawmakers and not involve in businesses.
f1,
'Those that do nothing and give up are the most harmful ones.'
As long u stay in your motherland, u can't stop caring.
simply, those arrogants people out there, you r not the only one wanted to
live in the world. those who said which ever person cannot afford to buy
expensive petrol please stay at home or whatsoever, Please la wei!.
dont be heartless. they also want to live. they also want to feel comfortable.
they also want to do a lot of thing with their small income. at least try to help
them la. cheaper petrol will do help them, will very very very do help you
as well.
if these small income people live very susah, then they will commit more crime. by then, please pray (for those arrogant people) that they will
not come and rob your house or steal your car.
Seriously menawan, converting a Singapore salary to MYR and talking about how cheap it is to live in Malaysia? Do you even realize how clueless you sound? You think all your neighbors in JB (who must really love to hear you blab about how cheap everything is) are earning in Sing dollars?
So since I earn USD and find Singapore quite affordable, guess that means you should stop complaining about SG prices? Like 4g63 said, how about your family try living on a Malaysian salary that's 60-70% lower and "see how many things we can buy in Malaysia"
You really think Malaysia doesn't also have retrenchments, sales tax, oil tax, car tax, road tax, income tax, property tax etc? And when compared to a MALAYSIAN salary, they're quite substantial. Instead of spending your daddy's sing dollars living the high life over the border, try getting a local job and supporting a family while relying solely on public transport, then we'll see how cheap and efficient you think everything is.
Adapavi said,
February 16, 2009 @ 9:55 am
Ayoooo…. sammy… why lah blasting everything to the G, I read all the comment but I don’t see anyone given any proactive or solution to overcome this problem.. I watched Martha Steward and there is a best quote from her… Go to your boss with a Solution not with a question?
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The government isn't our boss. The government is our "servants" hence the old term "government servants". We pay thier salary.
Thus we have a right to complain AND ask them for better SOLUTIONS.
Some people are truely brainwashed.
is this the current price for gasoline in singapore?
http://tonto.eia.doe.gov/dnav/pet/hist/rp15sin5d….
if it is true then, 1.3952 (U.S. dollars per US gallon) = 1.32815215 Malaysian ringgits per litre
fuel reduction parallel with falling oil price is ideal…heck everyone would love that…but lets say global oil price increases sky high tomorrow, will you agree paying the price inline with the increase? i bet most people will say "G lousy, now the price increase G need to subsidies more, want fuel at old low price blablabla….rakyat dont care, all rakyat expect is G bail us out, if G dont bail, G fail"…well then 1st G wont be able too coz they would have no money since rakyat got angry with them collecting taxes, 2nd if G subsides at low price, rakyat will get comfortable and start being lazy, back to the old ways (generally speaking malaysians are lazy people)…malaysian are like our very on beloved proton….give protection = slack, make crappy cars, not bothered to be innovative…same thing to the rakyat, give subsidies, give cheap price, get comfortable, then become lazy…for the country to move forward and for the income percapita to increase we need to have high productivity, like i said, we're a developing nation, we need to work twice or trice harder than people from developed nation if we want to get benefits like them (free medical, uni etc.)…i am not a BN people and certainly im not a petrol dealer lol…i live in selangor and for your info i voted for pkr…well not to say i regretted voting for them, alteast i get the chance to see what they are capable of, i will vote more carefully and not get sucked by sweet talks next time…
To cd.subaru…i agree…we as the people who voted for our government have every damn rights to make complaints, but make constructive ones…ni bash je keje (im not directing this to you or anything lol im just explaining the loud noises and what i meant by loud noises was nonconstructive noises) =D cheers bud!
To walksay…its not heartless…its called live within your financial means…and its possible to live comfortably even with small income tho it might be hard but its possible =) it became a burden when you live outside of it, trying to live more than what you can afford…
To kemosabe…i strongly agree with you…we've been denied good cars for so long…one of the policy we have that im not very fond of… =(
To 4g63tDSM…i agree with you bro about the servant-government thingy but i also agree with Adapavi…if we can come to them with a better solution, that can benefit us rakyat and the country, why not we go to them and provide them with it? im sure they are trying to come up with the best solution possible…and i dont think managing a country and try to please its 24million citizens is an easy task…lol…try managing 50 people…no….try to please 10 people perfectly i bet its already a big ask…its ok to base on your argument that we're the boss they're the servant…we ask them to do and we goyang kaki and expect them to deliver everytime coz we're the boss…but its not going anywhere isnt it? I get what adapavi is trying to say but you dont have to accuse him of being brainwashed, he's trying to tell some people to give ideas instead of bashing…=)
4g63tDSM said,
February 16, 2009 @ 1:39 pm
The government isn’t our boss. The government is our “servants” hence the old term “government servants”. We pay thier salary.
Thus we have a right to complain AND ask them for better SOLUTIONS.
Some people are truely brainwashed.
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Apanama Mr. 4g63tDSM, it is not political forum la dey.. bettter create your own blog and write whatever you want in your blog la dey… He he he!
to CFA28
lol i've just read your comment…this is an example that i was looking for…are you people ready to be like him? i sure am…if i wanna get low oil price based on market price, are you guys willing to pay like rm 5 the next day it goes up? most angry people bashing G for taxing it coz the market price is lower…but expects G to subsidies when it goes up…im assuming G is protecting us rakyat coz we generally are not ready for open market…ppl from outside will eat us alive…i believe there are always a good and bad side of things…like proton…yea protection denies us access to good cars…but think it this way, G is making sure that they dont go bust coz if they do…those ppl in proton would be jobless…unemployment goes up…its not just about your car fuel tank or your kitchen's grocery they have to think about…get rid of the subsidy mentality totally if you want us to follow market price…dont expect G to help you out when everything goes up…
P.S imo rm1.80 is affordable enough for normal average malaysian and its more transparent now then before regarding how G regulate the fuel pricing issue =D
lol littlefire "Hello.. this is automotive blog not Politics.." but ends up you talking about politics… XD
the problem is that the current Govt is led by idiots, who never did any careful analysis on their actions. Had the increase in petrol and electricity done gradually, the shock effect would not be too big. Another eg is "windfall tax."
Instead, one shot, up 30%. Immediately, prices shoot up and then, its gradually come down but unfortunately, the prices of other goods did not come down.
Even now, with the prices of petrol / diesel down, the bus companies are asking for an increase but to the layman, it seems unreasonable but then again, the prices of bus / taxi / express bus have not gone up more than 5-years. Suddenly, its 30% increase and once again, the shock effect comes again.
Just allow an annual increase of 5% to 8% and no one would complain so much. Of course, with increase in fares, service must improve. With no increase in bus fares, companies are forced to overwork their drivers and accidents happen. Also, who wants to work without annual increase in salary. Certainly not me.
trinity, your comparison of expensive living abroad is not right, if you want to convert back, you probably want to either do 1-1 (1 RM to 1 foreign dollar) or annual income. It is cheap to live in cities like Taipei, and even USA-LA if you do a 1-1 comparison. Of course if we earn Ringgit and living overseas that's expensive. Singapore car is expensive, but when you do a 1-1 comparison…whoola..thats why they don't complain.
CFA28, they are not idiots, they are smarter than you and me to come out all excuses, or statement to make sure their flow of $$ does not get interrupted. It just that simple. Where normal people like u n me suffer or not, who cares. The go-to-space project, the helicopter toy buying, and how about the public transport that have been taking for years? (everytime during budget, or election or tol raise will raise this but no action after that) and those go-to-space and toy buying projects can anytime buy out the tols to served the public, instead the $$ is being channeled to some project owners i guess.
Politics n the automotive industry go hand-in-hand. One can't live w/o the other. Politicians control the automotive industry; automotive industry is controlled by politicians. Pls understand this simple fact. Therefore, whenever automotive industry is being discussed, the G will come into the picture. The automotive industry is the second largest industry in the country after housing/construction (which is controlled by the G too).
from Iskandar:
based on current crude oil price at $37/barrel……. cost per litre will be $0.23. convert to our currency at 3.6/usd will be RM0.83 per litre?
Now we add all the cost above
alpha – RM0.05
o/cost – RM0.0954
oil co margin – RM0.05
dealer margin – RM0.1219
gomen tax – RM0.5862
Total = RM0.9035
So, RM0.83+RM0.9035
=RM1.7335 —– Still below current price?
From the above calculation we also know… who is the culprit that caused high petrol price.. its The G… 58sen per litre? then some more collect royalty, company tax…. not enuff? raised toll rate, dont want to reduce electric tariff..
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So, RM0.83+RM0.9035 —> RM0.83 is the price for the crude direct from well / pipeline.. or still not yet being refined.. the article says that MOPS is the price for the oil from the refinery… not like fresh crude price by NYMEX.
RM1.80-RM1.7335 = RM0.0666 is the balance i.e. refinery cost… it seems like RM1.80 makes sense… but I still think that RM0.0666 per litre refinery cost is very low… even nk tapis air reverse osmosis pon cost u something like 10-20 sen per litre kot… RM0.066 for oil refinery doesnt make sense…
In one of Australia newspaper, it mentioned on January 16, the MOPS price for petrol was about USD55/barrel. So, it was about USD0.3459/liter or in Malaysia it will be RM1.2452/liter (taking USD1 = RM3.60)
Now, we calculate based on the same calculation done by iskandar:
alpha – RM0.05
o/cost – RM0.0954
oil co margin – RM0.05
dealer margin – RM0.1219
gomen tax – RM0.5862
Total = RM0.9035
So, RM1.2452+RM0.9035
=2.1487 —- above current price because price now is RM1.80/liter
If no G tax, the price will be RM1.5625/liter which means that with current pricing G is getting about (RM1.80-RM1.5625) = RM0.2375/liter
Ratio of profit taking by G, dealer and oil company is around (RM1.80-RM1.2452) = RM0.5548/liter which is about 45% from the MOPS price
Compare to Australia which is not a net-oil exporter but using MOPS too:
(USD1 = AUD1.62) MOPS price was AUD0.5604/liter
Current petrol retail price is about AUD1.15/liter or RM2.77/liter (AUD1 = RM2.41)
This means that in Australia profit taking by G, dealer and oil company is about AUD0.5896/liter which is about 105% from the MOPS price
Someone said that in Indonesia (Jakarta) the retail price of petrol is about RM1.50/liter which is about IDR4601.22/liter (RM1=IDR3067.48). If we compare with MOPS price which is IDR4082.48/liter (USD1=IDR11802.5), the difference is IDR518.74.
This means that Indonesia G, dealer and oil company is taking operational cost and profit about 13% from the MOPS price.
But, please take note that currency foreign exchange plays crucial role here.
In Malaysia, MOPS price in RM is RM1.2452
In Indonesia, MOPS price in RM is RM1.3309
no point arguing here my friends..but i dont agree BN is the better government…we cant make much changes..we warn the G on our 12 election but did they learn any lesson??nope they didnt!!will they learn some day??nope they wont..
and about PR..they cant do much with just being at state G level..but i do see better service and better respond to complains..better management of town counsil and effort to keep water price at bay!!so i am currently happy with PR..
and i dont agree malaysia is a better country to live in!!migration rate is at all time high..we are now fill with foreigners(i mean illegal immigrant)..in 20 years time this immigrant will be up to 30% of our population..(i dont know why i m saying this..simply wanna share some facts..hehe)
back to the topic..
many people here say malaysians dont appreciate our G and etc..
the fact is..our G is not doing good enough..
if people here want facts…then think again..how do we get facts when we dont really have a clear picture on how the G manage our country..
do we know why toll rates keep on increasing??
do we know why non national companies get tax exemption with local car prices when NAP is design to protect national manufactures?
do we know how much is the real price of consumer goods without subsidy??
do we know how much real world petrol price here in malaysia??
do we know where our tax money end up??
do we know how much profits national companies are making??
do we know how much our G is earning annually and how much being spent??
we are all not sure about anything here..because we dont have the RIGHT FACTs to conclude…
but logic can reveal some facts…
lets say our population is on about 27 million people..and indonesia's population is about 270 million…we are merely 10% of their population yet we pay higher fuel price than them!!
anyone care to explain?especially those who support the G??we are a petroleum producing country..and yet we cant even help our 27 million population!!
we are one of the largest produces of palm oil and rubber in the world..but who is benefiting from it?companies like sime darby has monopolize the business and makes large profit..that then reason biodiesel and etc never really take off..if you guys say the G is really concern about the enviroment then why no plan on replacing fossil fuel with biodiesel??
why very little malaysians benefit from all this natural resources??why dont make many smaller companies instead of giving larger GLC and making malaysians merely workers,labours and slave to this larger coperations??
then public transport..buying more buses will not help if there is no proper system…our country development is not planned properly..we dont have a proper system due to poor planing over the past 50 years or so..just look at our cities..and outer cities..all housing areas has no central area where its easier for people to reach there and pick their desired transport..some are bless when their buses stop at stops which are walking distance a walk..some cant walk to near bus stop or station!!and there is no plan to overcome tis..for example..from my place..i have to drive to a lrt station..the get da lrt to work..i spend RM 20 for fuel a week and rm 10 for parking..and the pass is rm 100…so total a month is rm 220…and if i drive to work..i spend rm 300..since parking is rm 50 and petrol now rm 250…so which i would prefer??a mere rm 80 of saving will not attract me taking the public transport…
these are all basic..singaporeans dont even need to think of fuel price or owning a car..because they have very good public transport over there…
we malaysian we do need car,fuel,public transport and etc to go to work..
so we still lose alot!!in singapore..car is a luxury..but in malaysia its a basic neccessity..simple as that!!!
the average malaysian dont buy the car to show off or to use on the weekend..we buy because we dont have a choice and we cant even buy a car we desire but only the car we can afford!!simple logics will reveal enough facts…
Ozi,
I was just doing a very, veeeeery rough conversion, on a simplistic RM1 = 3,000 rp. RON 95 is 4,500 rp/L, "premium" which I assume is RON97 is 5,000rp/L. There's also RON92 there, but I forgot whether it's 4,000rp/L or lower.
F1,
I do see some credible ppl in PR at least (YB Tony Pua, YB Hannah Yeoh especially). As long as they are given the power, there is light at the end of the tunnel. Sadly, they're a "pendatang" (we already see the the effects during KDEB MD or chairman or CEO or w/e name for the top position fiasco), so unless we are willing to break some social taboo (including maybe becoming a republic of Malaysia), we will not be able to move forward.
getting a cheaper fuel is not the answer.
look at US. cheap fuel = cheap cars = giant SUV = bad millage
somebody will always complain is not enough.
somebody will always say we are net-oil exporter (for how long?)
somebody will say, we can always use petronas money to subsi(dies)
oil is getting more expensive to find in the future and i hope the government do the right thing instead the popular thing.
hey..just wanna say that..many of you only know the facts from the G.. how about the facts from the PR?? oh..i forgot..lot's of PR media is blocked.. so they didn't have chance to show the ppl what they r doing and everything..unlike the G..they can use a lot of media as they conquer them all..
so..why not the G give a little space for the PR to show what they have..only is G have their balls la.. then we know..who is better in taking care of the people n country..let's ppl decide.. nowadays it seems all the facts have been manipulated by the G just because they conquer all the media.. what u seen in tv, national newspaper and many more is..i think lots are not true..
for Prem3377… i totally agree with u!
Thou shall not plunder resources for own benefit. If rakyat finds out, thou shalt die a horrible death. That goes for both sides of the parties. We need to be able to differentiate between truth, cover ups and media usage in distributing information. If a new govt comes to light, they will also have the same power over prime media and ride it like the current govt. does.
And yes, car prices in Malaysia are said to be the one of highest in the world. Why can't compensate with cheaper fuel?
To those Malaysian who have never lived overseas; take off your blinkers. Nobody owes you anything. The job of the government is to govern. The job of the govt is not to ensure that you can live beyond your means. Malaysians are the biggest whiners in the world.
If you can't understand the fuel pricing mechanism, at least try and use your brain to think; rather than saying everything around you is fishy. You owe it to yourself and nobody else.
The govt is stuck between doing the right thing and doing the foolish thing. There is nothing that the oposition can do over and above what has already been done wrt the fuel price. The foolish thing for the government to do is to become popular and keep on giving candies to the public; whom I may add are clueless on what is going on outside of Malaysia. To compare Malaysia and Singapore is incredibly stupid because Singapore is almost like a PLC or Sdn Bhd, with no freedom of speech whatsoever in a homogenous society. Compare to Malaysia which is the opposite with all other complexities. If the govt does not give out candies to the massess (btw; who wouldn't want free fuel, free utilities, free housing, free toll etc..of course the masses would love that; Malaysians are full of it, they like everything cheap or free.), the govt would lose votes to the opposition; which in turn would eventually face reality..ie.. nothing is free in this world.
Go look at the mess the Phillipines and Indonesia are now. And don't compare with Singapore please. Don't compare apples with oranges.
Hi Mr. Tan
Need clarification on the below…
1. Malaysia is a crude oil producer, why do we have to follow MOPs
2. Why can’t we refine our crude and sell it here in Malaysia
3. The sales tax and subsidy…when the gov charges the rakyat sales tax…it is max 58.62 sens but when it subsidizes MAXIMUM is 30 sen…if it fair?
4. Why is the station allowed 12.19 sen per litre, when the station is selling other stuffs, renting out its premises to car service and car wash operators,coffee outlets, Mcdonalds etc for additional income.
5. Why is the station allowed 12.19 sen per litre when we drivers serve ourselves. Previously there used to be station workers who would pour the petrol for the vehicles… there is a cost saving for the stations on labour already…
1. Malaysia is a crude oil producer, why do we have to follow MOPs
– we are a net importer for petrol, not exporter. Anyway, mops is used as a guide, something like BLR, we still buy from whoever we want
2. Why can’t we refine our crude and sell it here in Malaysia
Because we sell our crude at a more higher price than the ones we but
3. The sales tax and subsidy…when the gov charges the rakyat sales tax…it is max 58.62 sens but when it subsidizes MAXIMUM is 30 sen…if it fair?
Considering they’ve been subsidizing for the last 20 odd years, what do you think? Also, subsidies can go to foreigners as well, tax stays within the country
4. Why is the station allowed 12.19 sen per litre, when the station is selling other stuffs, renting out its premises to car service and car wash operators,coffee outlets, Mcdonalds etc for additional income.
at a petrol price of RM2.00, the profit is less than 6% without considering overheads and risks. and credit card commission is taken out from there as well.
5. Why is the station allowed 12.19 sen per litre when we drivers serve ourselves. Previously there used to be station workers who would pour the petrol for the vehicles… there is a cost saving for the stations on labour already…
The nego for self service was conducted few years back, the reason gov impose it was part of not allowing operators to make better margin
LIKE THIS IF U READ THIS IN 2014!!!
Bs… petrol dealer never have such fine margin @ RM0.1219… if based on their contract max is around 5 cents p/l..
sales tax rocks
May i know any method of subscribe or purchase MOPS fuel price?i am doing some analysis and require this info urgently.
Hi, may i know any method of purchase or subscribe MOPS fuel price?I need the price from July 2015 until current month for analysis purpose.Appreciated if anyone could help
:)
Dear Paul
I am an employee with an oil services businesses. I’ve been reading your blog and wonder if you have any knowledge about retail pump sales (for RON & Diesel for the different regions, or by company brands) in Malaysia?
how come MOPO based in Spore where the country doesnt even have a drop of fuel? this is silly. Same goes to US, dont have any natural source.