It looks like Malaysian motorists will be starting the new year on a negative note, as fuel prices are expected to go up in January (tomorrow). According to finance ministry strategic communications director Datuk Lokman Noor Adam, this is due to the increase in the price of crude oil, as well as weak ringgit forex against the US dollar.
In a Bernama report, Lokman explained that fuel prices in Malaysia are set according to the average price of fuel in the world market, as it has been since the controlled floatation method was introduced in December 2014. “The average (here) means the prices from day one to 31 (of the month) divided by 31 days. Not the global oil prices at the end of the month as understood by certain quarters,” he said.
With the US dollar going from strength to strength against ringgit, the cost of purchasing crude oil has surged, Lokman added. On the matter of fuel subsidy, he made clear that the previous method of giving bulk subsidies had to be discontinued, because it benefitted the rich more than it did the poor.
The Malaysian government subsidised RM0.6843 for each litre of RON 95 back in July 2014 (before the current float system was introduced), according to Lokman. However, the rich used the fuel in bigger quantities compared to the poor, and hence received larger subsidies.
“For example, the subsidy for the poor people driving (Perodua) Kancil was only around RM16.29 when they filled their tanks to full with RON 95. Whereas those in the middle class bracket driving a Toyota Camry spent RM150 for a full tank. The subsidy that the government has to pay to these group would be RM48.87, a three-fold increase than the poor. Is this fair?” he asked.
Citing a study by the finance ministry, Lokman said that around 70% of the fuel subsidy went to help the rich, while the target groups it was mainly planned for enjoyed far less than intended. The previous bulk subsidy system also benefitted foreigners, despite it being borne by Malaysian taxpayers, he added.
“Subsidy means help, assistance and handout from the government to the people. If (you) ask who should get the assistance, we should certainly help the less fortunate first before the rich. And it should definitely be given to our people, not foreigners,” Lokman concluded.
Fuel prices in Malaysia currently stand at RM1.90 per litre for RON 95, RM2.25 per litre for RON 97, RM1.85 per litre for diesel and RM1.95 per litre for Euro 5 diesel. Stay tuned to paultan.org later today to find out January 2017 prices.
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And they conveniently left out the part that we are a net exporter of oil. Typical BS words from brainless people
What lies. They have started their lies again. What subsidy? Firstly, let me remind you, for 30 years, the Gomen has been lying to its people that our petrol is subsidised.
Hello, we produce our own oil. What you produce, you don’t buy. So, how can you subsidise something that you do not buy? There is no such thing as subsidy at all. If you grow vegetables at the back of your garden for your own usage, you cannot go around telling people that vegetables that you grow is “subsidized”.
Ask any oil man in the industry and they will tell you, Malaysia has ample oil for the next 100 years and we produce more than enough for local consumption. The problem in Malaysia is that we sell all our high grade oil (known as the sweetest oil in the world) to the rich Arabs. In return, we buy cheap dirty filthy full of sulphur oil from the same Arabs at global prices.
Malaysian high quality oil should be sold at cheap prices for Malaysians. Nearly every single oil producing nation sells their oil at super cheap prices to their rakyat (except UK and Norway). The Sultan of Brunei is a good example. He sells oil at super cheap prices to his rakyat, and the remainder, he sells it globally at global prices.
It is high time that we Malaysians realise that we are being conned for the past 30 years. The oil under our tanah air belongs to each and every one in Malaysia. It is our right to use the oil our own country produces.
Second bull is our ringgit collapsing and gomen says that this is because all other currencies are collapsing at all. Can I remind the bodohs running the country that we Malaysians have Internet. We can check. See the SGD Singapore dollar compared to the USD for the past one year. Past one year data shows the SGD drops slightly only to the USD compared to the RM Banana Ringgit. The same with other Asian currecies. RM Ringgit Banana currency statistically is proven to be the worst performing currency.
Third lie is that currency collapsing because of economic issues. This is not true. Ringgit collapsing is because Mat Salleh and Jepun have pulled out all their money from Malaysia. So, in return, Ringgit has collapsed. Why Mat Salleh and Jepun has pulled their money? It is because of Corruption. Nothing else. Western countries have labelled us renegade country and categorized us same as Congo and Nigeria.
Oil prices are globally very low, I have no idea why it is going up tomorrow.
best commen ever. For once I sokong Kunta!
Work harder bang
Spot on Kunta. Hopefully we all open our eyes. Pergi holiday kat Indon atau Thai pun skrg susah sebab Ringgit tak ada nilai. Apa lagi Eropah?
How mindless. And how shocking and scary that this many likes to this comment.
Hopefully, you’re not in business. If you are, hopefully you’re not borrowing taxpayer money for it.
If you were growing high quality special vegetables on a commercial scale, would you eat them everyday and give to your family members and neighbours for free? Or would you sell those and buy regular quality vegetables for your own consumption and make money to buy more useful things like a university education?
To be clear, we should not be using high quality fuel in the crap cars we use i.e. Wira, Myvi, Beca.
Anyway, the subsidy calculation is spot on. Why should the Camry driving tauke be subsidised RM30 on a full tank, while the kampung folk get RM0.60 in subsidies when filling up their kapcai?
Economic understanding is almost non-existent, probably a symptom of our education system and culture of neediness. People overseas think our staple diet is deep-fried sugar-filled flour balls with the amount of noise we make over cooking oil and sugar subsidies. Its sad.
I was at Bersih protesting the corrupt administration and fighting for change, and the worst thing I saw was people cheering for the Father of corruption, Madey, during the rally.
Its a sad situation here, and it starts with the people of Malaysia, not its leaders.
the grandson couples Jiney and Rossie out perform the grand father by light years using future debt and get rich now..
Wah..you mesti pengguna dedak ni.. the argument of subsidizing the rich vs the poor should not be employed laa..
The bigger cars pays more roadtax vs the kancils/kapchais…
Make the roadtax the same la dulu the i think that argument can use…
Don’t simply say la… How much more expensive is your road tax to the Kancil? Does this difference covers the additional subsidy that you get over the Kancil owner? Btw, you CAN still drive a Kancil… in fact, you can buy cash for it. Perhaps that can save you the loan interest. How’s that for saving?
Yes, okay, give the unloved rakyat low quality products to use, and when rakyat is sucessful, they will not love back the country that did not love them. That is why nobody is buying proton. Let the one who do not love you mampus!
That works both ways…
1.i think u juz came out from the cave. our education funds just been slashed. the subsidy is taken off the shelves for a year now. all our government did is cut education, cut health funds…. and many more.
2.subsidize more for camry than kancils. but how many camry vs kancils on the road?
3. rule applies if camry and kancils are foc or same price. tax payor pay tax for camry easily can pay off fuels for years
yup, they turned those consume per tank more to become subsidy more based on per car volume..how stupid.
the MyVi total volume is more than double of toyota, what says that?
Thanks Kunta!! This is how we continue to get the gomen we get.
With all your sophisticated points, you’ve managed to distort the facts. Typical selfish middle/upper-middle income group!! After all, who da f**k cares about the poor right?!
All that matters is your family and whether you can afford that designer coffee without having to compromise on savings for your child’s education.
Btw, have you asked yourself how is it like to stay in Brunei? I bet you like their Hudud law and the self-fulfilling royalty who has become holier-than-thou overnight after spending his life with his stable of rare cars and young wives.
Woi! Take care of your two nuts on your own first. Itu pun nak kera-jaan jaga jugak ke?
May I remind people here that all our oil is sold in USD and not RM. Ask any banker. Oil is traded in USD.
So, the Government is making big big bucks actually selling oil at 4.6 USD Exchange rate.
So, why lie to the Malaysian people about ringgit falling? Clear and obvious lie here.
Oil is traded globally in USD. Crude oil is treaded in USD. Brent is traded in USD.
Our Gomen is making more now that RM has fallen! Yet they increase 20 sen for 2017.
WTF statement…government gave subsidy because of helping poor or because Malaysian’s benefit? Brainless minister came out with brainless statement…for those buying 2nd hand 10 yrs Camry izzit belong to rich group of Ppl? Come on la…wawasan 2020? Fxxk off….
Typical rich people tell poor people to blame middle income people. Classic
I wonder where is the Faiz fellow who said the falling ringgit is good for our exports. Where is he now?
Ringgit drops, everything go up. Education, healthcare, food, transport, travel etc etc etc
Rich here means husband and wife combined gross monthly income RM10k, two cars: a myvi and a persona, an RM800k terrace house 40km from KL, a bibik to look after 3 kids.
In world class standard, this is typical bangsat!
Not only benefit the rich, but also smugglers. And we as the taxpayers paying subsidy to Thailand and Singapore citizen too.
Just seen at the petrol station. One van fill in containers of diesel. Rough estimate, more than 10 plastic containers. Lol.
One question we must ask ourselves, for about the past 20 years, Malaysia has been enjoying super high oil prices. Why did not Malaysia save the money?
Dapat duit only enjoy and jolly. Malaysia should have saved every year. There were years even Petronas earned like RM120b a year. Billion. Not million. The good days were going on for about 20 years. Why did not Malaysia save? So that, a rainy day like this, we will have money?
Where is all the oil money going to? Do you know in Norway or Sweden, every one of their rakyat is a multimillionaire (in USD). They have created a sovereign oil fund which belongs to every single rakyat.
This means that, every single of their rakyat own the sovereign oil fund, now worth US$900 billion making every single citizen a millionaire.
Where is our oil money going to?
Jangan marah2 sangat.
The only thing I agree with most anti-govt comments is govt spokemen are stupid.
Jangan gelabah tentang harga minyak saying we pay over price etc.
Our neighbor, Indonesia is also an oil producing country, yet they are selling fuels to their rakyat at a higher price then ours.
For example, RON92 is sell at RM2.70 perliter. Here in Malaysia you can get a liter of RON97 with the same price, although in near future you won’t.
Just chill, relax, work harder, be faithful, and vote for the govt of your choice in the next GE. Make your voice count.
As we know Indon population is 5 times more than us , and wat is quantity oil production ?? How much they paid tax for a car ? In fact , mengapa kita mao persaian ( berlaja ) dengan third world country lagi ?
En Murad
It is the job of the police and customs to prevent smuggling. Who has failed here?
Stupid. Subsidy is for benefit of everybody either rich or poor as long as you are malasian. Doest matter whoe use.more.or.not. All price will going up without subsidy and will effect all rich and old people. Current system is good enogh. Rich to pay more tax, whilst poor not rqd.
This will encourage poor people to be lazy and stupid. So poor people. Stop complaining. Might as well say poor people don’t need to do anything, just wait for rich people to feed you!
Why not fair Datuk? Subsidy must also reward taxpayers for their continued support of government.
Encik Lokman, the poor don’t pay income tax. The middle class do. Isn’t it fair that the middle class get back some thru petrol subsidiary? If MO1 manage this country well, we won’t be in this shit.
Yes the rich is taking more fuel and subsidies, but dont forget they are paying more taxes.!
Middle income family pays the most while the ultra-rich less
It was not about helping the riches, lower fuel price will help to control the inflation of other goods which is by far will help most of Malaysian.
Somehow the govern didn’t get the idea of initial hurdle of buying something is only faced by the poor? It’s an inelastic demand, people will buy it regardless of price. Help the poor by making it cheaper la gomen….
Yes the rich is taking more oil and subsidies, but dont forget that they are paying more taxes!
This he will conveniently not mention. It will make him look stupid.
No.1 question is who screwed up our economy? Answer is obvious and that is the root of the problem that we are facing now. Hope orang kampung will vote wisely next election
This guy thinks like a empty can. It is a very simple scenario. A less fortunate person will feel the pinch more with the increase of fuel price.
Wealthy person don’t feel a thing with this increase.
And if you increase the price of diesel, the price of goods will go up due to transportation fees. Again , the less fortunate will feel the pinch more than the wealthy.
For the smugglers issue, it is the Kastam that is not doing a good job at catching smugglers and it is due to corruption. They only good at collecting GST.
Dont blame the cheaper price we have here. If this is the case, we forever cannot sell our oil cheaper because Thailand and Indonesia is selling it more expensive ??
Lokman is talking KOK. Who do Not know that your father is a Man. Your statement on – “due to the increase in the price of crude oil, as well as weak ringgit forex against the US dollar” that is causing/forcing the Gov 2 increase the price of petrol.
Don’t tell us about benefiting the rich bcos the Rich Don’t Care & it does not affect them BUT it affect the poor(B40) more as the price of fuel increase, so will the price of transport.
It affect the entire supply chain & that means the Goods & services will increase hence, it affect everyone except the cronies/rich Datok’s/Tan Siri’s & U. Get that into your thick Skull.
Mind as well give free petrol for us Malaysian motorists on the spot. Case closed.
or ZERO tolls and ZERO car taxes on us Rakyat.
otherwise
A huge F*** you!
I pity those who drive Kancil…poor generalization
Malaysia car price is the world’s highest, the tax money we pay for the car is more than enough for 10years fuel. So minister why you only know to adjust fuel price to be par with world market price, but you never lower the car price as per world market price???
Why the so called “rich Camry owners” can’t allow to get the subsidy ? They pay their taxes and contribute to the country ? Why have to pick on the rich ppl as if they did something wrong and shouldn’t get anything from the govt.? IF the govt. so caring for the rakyat pls clean up the “leakages” and the abuse of power by the ppl in power…and one more thing pls think first before coming out with naive and idiotic statements. Thks.
Yes the rich pay more in a progressive taxation system and in return get rule of law, military, healthcare for the masses, education for the masses, environmental services, social services, etc. And no, the government doesn’t owe anyone anything, but the poor need to have protections or else there’d be societal breakdown if the poor couldn’t afford transportation, education, and healthcare while the rich enjoy private schools and private healthcare. Unless you think society owes you a living, and you believe your are poor despite having a daily Starbucks, driving a Passat, and having a university degree paid for by your parents, in which case there’s nothing left to argue.
Tl dr, subsidies are inefficient and the worst use of public funds. Direct cash transfers to the poor have been proven efficient. We are way behind versus modern research-based evidence as we’ve never had a structured social security system.
Lokman, Ada otak tak?? Petronas is drilling out the oil and you are saying we are buying crude from overseas, what are you trying to proof?? Petronas has all the refineries in Malacca, kertih, kemaman, miri, bintulu for all the Malaysian crude oil that is drilled out from offshore fields and onshore fields. Are you telling all Malaysians are bodoh???. You are screwing up the lifes of all lower income group.
Actually Petronas sold locally drilled crude oil as ours one of the best quality in the world in return we bought middle east or latin crude oil with the profit from the oil we exported.. you need to read more about oil trading…
When our exported sweet crude benefits from the USD hike, petronas and the government happily and quietly pockets the profits.
But consumers will have to shoulder the increased cost from USD when we use the cheaper sulfur filled oil.
Clever isnt it. So why oil producing states still vote BN? When they dont even get much oil royalty back?
This is happened exactly when govt is in the hands of people who have zero capable to run their respective ministry.shame on u najis n ur team.b prepare for more corruption n hi inflation.This country is exporter of crude oil lookman boota close oil on thAt n najis as well so next ge bring bangla and rogingha people vote to u n still u will loose
Secondly this slight increase in crude oil is temporary
Thirdly give us formula how u calculate
And lasts govt should not interfere in fixing rate on per month basis and let it open like USA and Europe countries practising
Nice spin. That doesn’t mean the poor didn’t benefit from subsidies. It’s just that they tend to drive smaller capacity vehicles and motorcycles.
Im not as angry about gov taking away subsidy than I am about various businesses taking advantage by increasing prices of their goods and services. And more angry that the government did not do anything to stop these people from profiting. But when price of oil went down globally, the same goods and services don’t decrease in price.
Minyak naik 5 sen harga barang2 satu kedai naik 5 sen. No logic whatsoever. You use the same lorry to carry all the goods not 20 or 30 lorries. This whole up and up effect (but never down) in a short time creates inflation that we are now “enjoying”! Yeah thanks a lot…
Who controls 99% of the government and all the GLCs?
Tepuklah dada dan tanyalah selera kamu.
It’s easy to give out all sorts of excuses just because Government decided to stop the subsidy.
There are plenty of alternatives to help the poor, Government can give out BR1M, lower the tax, build PR1MA houses, gave government loans, even make a special fuel subsidy for lower income group…
Higher horsepower cars generally have higher fuel consumption and road tax, and some luxurious car owners actually use RON97.
Also, our neighbour Singapore, doesn’t have fuel subsidy, why are the BN keep quoting examples that poor groups in Singapore being discriminated?
If government you want to stop the subsidy, just do it. Don’t have to give us lousy reasons for us to condemn.
Agreed. I saw many rich ppl with car prices of RM 180k and above are fuelling RON 97 or RON 100 petrol.
What a joke man!!! We Malaysia do export oil to the world market, and it is deal in USD. In this scenario, we shall be earning more from the forex premium. Why this is not consider of transferring back to Malaysian citizens?
Moreover GST income with billions ringgit and it not enough to subsidies back to the society? As we citizens understand, many essential items are with lesser subsidies year on year basis.
Why not abolish all subsidies, because apparently the rich have more purchasing power and likely to buy more, thus benifiting more from the subsidies.
Yes, agree.
Lokman jangan buat statement bodoh!
Government takes the tax money from the non-poor income groups, the same ones who deserve to drive good and safe cars on the road and helped build the national economy and contributed to the government’s coffers to see it wasted on stupid things including Lokman’s salary. You ask if the susbidy used by the same people paying taxes is fair? Go jump off a cliff.
Jangan buat statement kurang ajar to the taxpayers!
Wealth is not like taxes it is for both rich and poor. The rich hopefully creates employment, anyway what is your definition of poor, to me, in this case, someone who does not have a car. I hope you do not mean those driving to EARN A LIVING.
Wealth of the nation is not like taxes it is for both rich and poor. The rich and poor hopefully creates employment from entrepreneurship and other ways. What is your definition of poor, to me, in this case, someone who does not own/afford a vehicle . I hope you do not mean those driving to EARN A LIVING.
Rich people avoid such duties and taxes on their 330e X540e c350e s400h XC90t8 and tesla. And their EV cars uses less fuel than a kancil. Dumb minister!
10% of the population funding 90% of the rest. it’s a clear gov failure and screw up policies since independence to bring the nation competency and productivity while blaming the so called rich (that essentially the suffering middle class)
None of the reason given has shown the real root cause. As usual, blame everyone but themself. Accountability is zero, Integrity is zero, talk cxxk is hero, all problems is “aero” (to others),
thats old percentage … now sudah changed.
98% help the lucky 2% …
That’s why GST was introduced. Now they can tax every man, woman and child. Remember, the Gomen always win.
Stupid statement. Your noble intention to help the poor will caused the middle and poor suffer more when the fuel price up goods cost also shoot up. Then it basically defeat the main purpose of pulling away the subsidy. Why not G just put that the G reducing the subsidy because they dont have any money in reserve. What happened when oil price went down? Any goods price down? It benefit the rich more than the poor. Just stop the BR1M, reduce unnecessary big groups for oversea trips and reduce your tea snack in meetings. Those are the savings that should G do rather than reducing the subsidy on the pretext Global Price went up when G doesnt even take proactive action in savings. Show us your sincerity in cushioning the economic impact.
Fuel prices increase due to weaker RM? What about the fuel that u sell that transacted in US? Where r all the profit goes? Malaysia is a oil producing country right? Don’t treat Malaysian as stupid no Brainers la…
When Govt do away with fuel subsidy, taxes and duties should come down or abolish, last time Govt siaw those duties and taxes are used to subsidize our fuel prices but when Govt take away the fuel subsidies, car price didn’t adjust… really disappointed in this Govt. Away think of ways to take advantages of Rakyat.
If gov manage well from the past 50 years to now…don mind free fuel to all Malaysian , rich poor semua dapat…… Sorry , perhap no poor Malaysian !
Guys, no point complain again and again. Make sure vote nicely in the next election. There is no more future if Mys still ruling by barang naik. All profits will still go back to the master regardless fuel up or down. Please go home and tell your atuk, nenek, mama, bapa we need to change.
If just ‘they’ can create a more systematic system to differentiate between the rich and poor at gas station.
OMG, i am not rich, all my friends are not rich but we forkout large portion from our salary for the petrol (and toll), so, what the hell is the brainless minister lying about rich get most the subsidy? the most affected group is the middle class which used to drive a car to work.
if the gomen really wants to help the poor, then abolish the tax on new car.
we need to pay gst, road tax, income tax, etc. until nothing left to be spent for saving
Now the “rich” rakyat takes the toll eh gomen? So they say THE RAKYAT should not carry the suffix of “RICH” to get fair and square treatment? They are saying those people who worked their asses in this country are greedy and the bad guys in this picture? Yes the poor need to be assisted and lifted. But then which part does the government play in this picture? An angelic saint-like God sent creatures that saves millions? Omg i can’t accept this.
I’m confused.
I thought Ringgit value is somehow pegged to crude oil prices? If crude oil goes up, Ringgit will go up too, and otherwise?
Hello, who pays taxes the most? Middle income group. Who suffers the most? The poor. Now ask in relative to other rakyat, who pay the least taxes (read: evade taxes)? The elite rich! Don’t get blurred by these blood suckers, this is just a very typical example of the rich using the poor to blame the middle income earners so that things can continue to be how they have always been, status quo (read: greed).
Rich who own the most, pays the most income tax. Ananda Krishnan probli pays more tax money than 100,000 bangsats combined.
Idotlokman
If govt subsidy system is not working right, change it. Don’t give lame reasons it is not fair. Subsidy has been long gone, now you mention that it wasn’t fair for years. Everyone understands that govt is poor because of bad management of funds, so no one cares about the past subsidy system now. And please don’t insult rakyats intelligence by completely not highlighting the fact that our country produces oil. Malaysians pay more than other oil producing countries in the world, WHY WHY?
“70% went to the rich”…who are the ‘rich’ i wonder….
there are still many poor people in this country..we get punished together with them ^^
No harm benefiting the rich. They pay the most income tax, buy expensive imported cars which also pay more import duty, pay money to AP kings. So why complain that the subsidy benefits them? If it were not for them, where do you get the money to subsidize?
It is so easy to just compared the rich and the poor.. whereas those groups suffer the least as the mid income group suffer the most..
yes camry subsidized more
but how many kancil in contrast to camry on the roads in malaysia?
He thinks he is saying something earth shattering. Only one word to describe this guy; myopic.
Same comments year after year, decade after decade. We don’t have big oil reserve so let finish it fast and done with it.
hi,
can any tell me if in Malaysia the fuel price are the same between the brands. How many brands do you have?
What are the approx number of the fule stations in Malaysia.
Many thanks
Jie