The new fuel ceiling price mechanism, in which fuel prices will be announced on a weekly basis instead of monthly, will begin on March 29, the New Straits Times reports.
Minister of domestic trade, cooperatives and consumerism (KPDNKK) Datuk Seri Hamzah Zainuddin said the announcements will be made every Wednesday, with the new weekly prices coming into effect at midnight the following day.
“Following recent discussions with petrol companies, the government has agreed to announce the new prices for petrol and diesel on a weekly basis, every Wednesday,” he said. The prices will be based on global oil market rates.
When the new system was first announced earlier this month, it was reported that fuel retailers will be able to follow the ceiling prices or set them lower. This was reiterated by Hamzah in his announcement of the kickoff date today. “Private companies and petrol station retailers who wish to offer discounts from the fixed prices can do so by getting the approval from the ministry,” he told reporters.
In the earlier report, Hamzah had said that the government is determining the fuel price to avoid it exceeding the correct market price. “In reality, what second finance minister Datuk Seri Johari Abdul Ghani and I are doing, is to ensure the people know what had been determined by the Petroleum Dealers Association of Malaysia,” he stated.
The idea of setting a fuel ceiling price was first announced in February, with Johari suggesting it as a means to tackle the issue of escalating fuel prices. At that point, the price of RON 95 had been raised two months in a row, effectively up 40 sen compared to December 2016 (RM2.30 vs RM1.90 per litre).
The Petrol Dealers Association of Malaysia (PDAM) was initially unhappy about the move, but later said it welcomed the implementation of the weekly price revisions. It had in the past mooted the idea of a weekly system, saying that the current monthly system could cause fuel retailers to incur heavy losses and that weekly price updates (of smaller fluctuations) would not be “too noticeable” for motorists.
With ringgit going downhill, instead of increase price every month, now they want to do every week.
If you actually monitor the Brent oil chart, you’ll notice that oil prices will be much lower if it is set weekly rather than monthly.
Soon Ringgit will be Banana Currency. If petrol was RM2.70 when oil was USD103 per barrel, can you imagine what will happen when oil reaches US$103 again?
Now already oil at US$45 per barrel we pay RM2.30
At US$103 per barrel, per litre minyak will be RM5.50
No, it won’t. The oil price currently facing downtrend again (even after oil supply cut by the OPEC). It needs even more huge supply cut to make oil price rises again. Do you want to know why the oil price facing downtrend again? US shale oil production. Apparently the US shale oil companies step up their own production, they don’t want to play nice with OPEC decision. MYR is not a banana currency as you claimed. MYR in this kind of state isn’t because of internal forces, but because of outside forces. The biggest outside forces are the devaluing of Yuan, and the strengthening of USD. Our MYR is just fine.
in 2015, 1 SGD = RM 2.5. 10 Thai baht = 1RM.
today, 1 SGD = RM3.1. 8 Thai baht = 1 RM.
you tell me whether our MYR is just fine or not ?
Can’t see the logic from this…
Following world oil price?
But own country producing own oil !!!
How many profit did they really increased 100% to 200% ?!?!
Sorry but the amount of oil our country produce is less than the amount of oil we import. So, Malaysia is technically not oil producing country. Although, the increase in fuel prices is not that favourable for me.
Yes, our country also produces own oil. Malaysia’s crude oil production: 668kbpd. Malaysia’s oil consumption: 800kbpd. We consume oil more than what we produce, hence we are actually a net importer of oil. We import oil from other countries to fulfill our own huge consumption. One more fact, the oil we produce aren’t totally being consumed by us Malaysian. Other countries buy our oil for many purposes (as jet fuel, industrial uses etc). Therefore we have to import oil for our own usage, hence that’s why we have to pay according to the international oil price. Actually, the oil produced in Malaysia also follows the international price, we have no options other than pay what is dictated by the international market.
…on a lighter note, the galaxy s8 will be out on the 29th too hahah
queue starts every Wednesday..hurray Malaysia boleh.
Syukur, sangat syukur…..
There will be no price war. Every single petrol stations will set the price to the ceiling.
Cronies win. Rakyat suffers. As usual.
Malaysia memang boleh
Next step: do it daily. I dare you
Government should protect and defend the rakyat, not The Petrol Dealers Association of Malaysia (PDAM) profitability.