Simplified version of RON 95 petrol, diesel price calculation formula to be made public soon – Hasan

FUEL-PRICE-MALAYSIA-BREAKDOWN

A simplified version of the formula used to calculate the price of RON 95 petrol and diesel will be made public soon, Domestic Trade, Cooperatives and Consumerism minister Datuk Seri Hasan Malek has said, according to a report by The Star.

“We shall seek approval from the Ministry of Finance first and then we will include a simplified version of the calculations on our website,” he said, adding that although the calculation is complicated, he understood the need for the people to know how the prices are derived.

The table on the left, from February 2009, outlines the Automatic Pricing Mechanism, which has been used since 1983 to compute fuel prices and stabilise them to a certain extent via a variable amount of sales tax and subsidy. Read the full explanation of the APM here.

However, now that subsidies for RON 95 petrol and diesel are no more and their pricing is based on a managed float system, the calculations may be different – possibly similar to how the price of RON 97 petrol is derived. We eagerly await the release of the formula – it might even explain how the price of diesel has increased post-float.

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Jonathan James Tan

While most dream of the future, Jonathan Tan dreams of the past, although he's never been there. Fantasises much too often about cruising down Treacher Road (Jalan Sultan Ismail) in a Triumph Stag that actually works, and hopes this stint here will snap him back to present reality.

 

Comments

  • Formula to maximum PROFIT! YESH! We’re all gonna be rich!

    Like or Dislike: Thumb up 17 Thumb down 3
    • Abu Sayur on Dec 02, 2014 at 8:47 pm

      Again they are undermining the Rakyat’s intelligence. Just release the full formula la jibai

      Like or Dislike: Thumb up 43 Thumb down 2
    • applegreen on Dec 03, 2014 at 12:16 pm

      We all gonna be rich or we all gonna be bitch?

      Like or Dislike: Thumb up 6 Thumb down 0
  • David Tan on Dec 02, 2014 at 5:16 pm

    Sabah & Sarawak should get CHEAPER price. Thanks!!!

    Like or Dislike: Thumb up 13 Thumb down 3
    • I totally agree with u david.. cause ppl. at Sabah n Sarawak buy everything also expensive then Peninsular Malaysia… just for example national car.. lagi ckp satu Malaysia…kua pui the Gov…

      Like or Dislike: Thumb up 9 Thumb down 0
  • kanazai2001 on Dec 02, 2014 at 5:16 pm

    PM announced RON95 & diesel are TAX FREE!!!

    Like or Dislike: Thumb up 4 Thumb down 10
  • VWfanboi on Dec 02, 2014 at 5:20 pm

    their calculation is always right ^^ last time the fuel price naik 20 cents they still said they subsidies RM0.28 sen per litre. remember ? ^^

    Like or Dislike: Thumb up 21 Thumb down 4
  • truely malaysian on Dec 02, 2014 at 5:29 pm

    Sales tax 58.62 cents is ridiculous robbing Rakyat 25.94%!

    Like or Dislike: Thumb up 23 Thumb down 4
  • China Super power on Dec 02, 2014 at 5:30 pm

    who cares how its calculated, since there is no more subsidies… YAHOO !

    Now everyone must reduce the prices of food and drinks since oil price has plumetted to 5 year lows…. But are they ?

    Like or Dislike: Thumb up 16 Thumb down 20
    • Don’t know sarcastic or just plain dumb.

      Like or Dislike: Thumb up 16 Thumb down 1
    • Obviously (Member) on Dec 02, 2014 at 6:48 pm

      Only a fool would not care about the world around him.

      This reveal is important as it is a simple and necessary step towards transparency regarding economic factors that impact each and every one of us who drive around.

      Like or Dislike: Thumb up 12 Thumb down 5
      • makahai on Dec 02, 2014 at 9:40 pm

        Yes ChinaSuperpower a fool… but you a bloody fool.. caring about things absolutely beyond your control.

        So tomorrow petrol price increase to $3… what you gonna do ? what can you do ? sell your car ?but only bark bark bark or line up at petrol station before 12am ?

        So stop being a jaguh … a jaguh kampong

        Like or Dislike: Thumb up 4 Thumb down 24
        • Obviously (Member) on Dec 03, 2014 at 5:21 am

          Hm. Don’t know what you’re saying about jaguh kampung. So random and irrelevant.

          If you don’t know how the prices around you are derived, then you’re setting yourself up to be easily cheated. Sure, it’s out of your control, but knowing how things work is better than only knowing how to use things (that’s how advances in technology are made and scientific discoveries come about – caring about things that you don’t really need to care about to go on with your life). Granted the level of wisdom of this and quite possibly the next generation is dropping, but please don’t contribute to the drop yourself. It’s a worsening attitude problem.

          Pushing the price to rm3 abruptly will have dire consequences for them so I don’t think they will pull it off unless they are willing to give up their seats at the next GE.

          So my point is that it’s good to see some of the process going on behind the calculations but it’s better for them to make the full calculations available to those able to interpret it as well. That sort of transparency is lacking in this gov’s system, in many areas. When every aspect of the system is opaque, corruption is easily rampant. Like it is now. But the whole issue has more factors than opacity vs transparency.

          Like or Dislike: Thumb up 20 Thumb down 1
          • makahai on Dec 03, 2014 at 9:12 am

            You banyak cakap, tapi semua cakap kosong… Just answer the question… what can you do if prices goes up to $3 ? can do Nothing right ?

            So talk less and go back to work, in your case go back to sleep… still online at 5.21am !

            Always barking about govt not transparent, govt not fair la etc etc. The govt don’t owe you a living la !

            Not only you Jaguh kampung, now you promoted to armchair politician. Go do something useful instead .. go check the meaning

            Like or Dislike: Thumb up 1 Thumb down 31
          • @makahai, I detected no barkings in Obviously’s post. However I detected a lot of barkings in your post (by counting the amount of ! you used).

            What Obviosly wanted is transparency from the government, that’s clearly stated in both of his comment. However I find no value in your comments other than insults and asking people to keep their opinion to themselves. This will be the only post I reply on this matter. Work hard boy :)

            Like or Dislike: Thumb up 23 Thumb down 0
          • Kangkung Rasa on Dec 03, 2014 at 11:29 am

            Agree what “Obviously” , “Name” said.

            @ makaihai.
            Why dont you rename your nick as “Sawhigh”?

            Like or Dislike: Thumb up 5 Thumb down 0
      • makahai on Dec 03, 2014 at 9:59 am

        @Name you ni ball carrier ? Must be a tiring and smelly job carrying someone else’s balls and walking two steps behind all the time ya ?

        Like or Dislike: Thumb up 0 Thumb down 27
        • makahai on Dec 03, 2014 at 10:13 am

          and stop thumbs up your own comments to make yourself look good when you dont !

          so typical jaguh kampung , so typical armchair politician behaviour

          konon defending transparency sanctity of govt , but in reality for own selfish interest to rile up readers’ hatred against anything about the govt does

          Like or Dislike: Thumb up 1 Thumb down 28
          • Maserati(Official) on Dec 03, 2014 at 2:38 pm

            Judging from the usage of words from this person we can safely say that we are dealing with a person with a leas than desirable intellectual capacity. And btw the usage of ! you have in your sentences clearly points out the extent of your credibility. You are akin to this petulant child wailing out for attention. Btw if you noticed I have personal attacked you yes I did because that’s what you did in the first place. If you want to post something, post something constructive. Now go back to your day job and driving your junk.

            Like or Dislike: Thumb up 6 Thumb down 1
  • Same L0rrr on Dec 02, 2014 at 5:56 pm

    Remove fuel subsidy? Please REMOVE STUPID TAXES (excise duty, import tax, AP etc) also!!

    Like or Dislike: Thumb up 42 Thumb down 4
  • JB_KIA on Dec 02, 2014 at 6:24 pm

    so, petrol price will never drop beyond 12.19sen/L else dealer rugi?

    Like or Dislike: Thumb up 6 Thumb down 0
  • Diesel_97 on Dec 02, 2014 at 6:52 pm

    They forgot to include Tipu Tax = 75 cents, Koh Tax (for men only) = 90 cents, coffin Tax = 45 cents and Teh Tax (for women only) = 45 cents and Mek Nyah tax = 85 cents.

    Apa lagi yang gov nak?

    Like or Dislike: Thumb up 22 Thumb down 4
    • APKing on Dec 02, 2014 at 9:47 pm

      Oxygen tax = 50sen , carbon dioxide tax= 60 sen, carbon monoxide = 70 sen , sunlight tax = 65 sen , rain tax = 55 sen, wind tax = 45sen, moonlight tax = 35 sen

      Like or Dislike: Thumb up 17 Thumb down 1
    • kusochon on Dec 02, 2014 at 10:46 pm

      tak lawak pun

      Like or Dislike: Thumb up 4 Thumb down 22
  • petrol dealer margin is that high????

    Like or Dislike: Thumb up 11 Thumb down 0
  • UNBELIEVABLE petrol dealer margin!!

    Like or Dislike: Thumb up 5 Thumb down 0
  • transformer on Dec 02, 2014 at 9:33 pm

    not only our national oil & gas player operating cost are HIGH, need to add Proton, MAS, MAHB, KTM, IWK, TNB and many more to the same league…

    Like or Dislike: Thumb up 13 Thumb down 1
  • Lauyiachia on Dec 03, 2014 at 8:24 am

    Never understand why govt must be involved in this justification when there is an anti-competition law in place and the oil price is floated based on market forces since govt no longer subsidise the petrol. Should instead enforce such law and allow petrol companies to compete for customers and publish their oil price offering at all petrol stations CLEARLY.

    Like or Dislike: Thumb up 16 Thumb down 0
    • Kangkung Rasa on Dec 03, 2014 at 11:48 am

      THis is most well develop country doing.
      However, G hungry for money now to cover those
      losing money crony project.

      Like or Dislike: Thumb up 3 Thumb down 0
    • Kangkung Rasa on Dec 03, 2014 at 11:48 am

      THis is most well develop country doing.
      However, G hungry for money now to cover those
      losing money crony project.

      Like or Dislike: Thumb up 0 Thumb down 0
    • ayooo on Dec 03, 2014 at 11:53 am

      No way. The system is a nightmare in UK. Petrol station price their fuel at their own wimp and fancy. I remember spending a whole day searching for the cheapest petrol pump in Liverpool and found that the one outskirts of the city is the cheapest. So, I happily went to fill in there for a month until one day, the petrol station increase the price to the same price as the one in the city. So, once again I have to spend a day to search for the cheapest petrol station. Repeat the same thing for four years and you get my picture.

      Like or Dislike: Thumb up 2 Thumb down 1
  • Kangkung Rasa on Dec 03, 2014 at 11:31 am

    All the goods what current purchase with many hidden cost.
    AP, Excise, Import, National tax, sales tax, etc.

    If Gomen want to implement GST.
    Others tax should remove!
    All replace by single GST tax only!

    Like or Dislike: Thumb up 3 Thumb down 0
  • zaizaizai on Dec 03, 2014 at 1:56 pm

    I think the ‘normal’ selling price is as follows:

    Selling Price = Average of Previous Weeks MOPS (Singapore) plus Premium plus Throughput Fees plus Duty less Subsidy

    1 bbl = 158.9872 liters

    Like or Dislike: Thumb up 0 Thumb down 0
  • Yeaahhhh … No more Subsidy & Welcome to “Sale Tax”… So Govt had no more reason not to reduce “Car Excise Duty”….

    Like or Dislike: Thumb up 0 Thumb down 0
  • Why simplified version only?
    You think we can’t comprehend the “real” version?
    Please also give us the complete version with the input you use to calculate the price.
    Thank you.

    Like or Dislike: Thumb up 2 Thumb down 0
 

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