Gov’t to retain managed float system for fuel prices

Gov’t to retain managed float system for fuel prices

The government will continue to use a managed float system to determine fuel prices in Malaysia, with reference to the world price of crude oil. This is according to second finance minister, Datuk Seri Johari Abdul Ghani, in a report by Bernama.

“When it comes to a stage where we have to make a discussion, we will discuss it. As far as today, it is still far, as we have to remember that it was US$140 per barrel before,” he said.

Johari was referring to the world price of crude oil in 2008, which reached US$140 per barrel, and RON 97 was priced at RM2.70 per litre. Recently, RON 95 was set at RM2.31 per litre, the highest before weekly price updates were introduced.

Gov’t to retain managed float system for fuel prices

He added the constantly changing price of crude oil was beyond the government’s control, and it could only monitor the situation and distribute the 1Malaysia People’s Aid (BR1M) to assist those in the lower income group.

“Today’s float scheme will be maintained as we cannot change it, as (world crude oil price) is beyond the government’s control. It’s still far from what we’d seen, and it’s still manageable at around RM2.31 per litre.”

“Malaysia now has a population of 31 million, and is the 25th largest oil producer, not the number one or two. If we were to look at other oil producers, some produce up to 11 million barrels a day. We cannot control the world’s crude oil production. What we can do is make sure that monitoring is done so as to avoid causing hardship to the people,” he explained.

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Low2215 on Nov 13, 2017 at 11:46 am

    Well , Subsidy is a form of tongkat . We should remove it to encourage the survival of the fittest ! Now please dislike the comment .

    Like or Dislike: Thumb up 31 Thumb down 11
    • Gargantia on Nov 13, 2017 at 2:12 pm

      Until now the formula still in shame…
      Wondering when the calculations formula will be transparent?!?!?!

      Please stop misleading Rakyat and making excuses !

      Like or Dislike: Thumb up 27 Thumb down 3
    • waimak on Nov 13, 2017 at 2:21 pm

      PDAM will survive !

      Like or Dislike: Thumb up 6 Thumb down 0
    • tokmoh. on Nov 13, 2017 at 3:27 pm

      I agree. Harga minyak naik pun, Honda, Mercedes sales record, iPhone X sold out, KFC penuh. Mana rakyat terjejas?

      Like or Dislike: Thumb up 8 Thumb down 8
  • thepolygonal on Nov 13, 2017 at 12:04 pm

    Durian price also beyond your control. But you export berjuta-juta to China and left the locals all empty handed with high price of durian. Thank you very much.

    Like or Dislike: Thumb up 40 Thumb down 3
    • Rightwinger on Nov 13, 2017 at 1:13 pm

      As if the G is the one exporting…ask the producers/orchard owners or the middle man la…

      Like or Dislike: Thumb up 7 Thumb down 7
    • It is supply and demand. Go get durian kampung for only RM8 to RM15 per kilo. Can’t afford premium grade Durian, blame the Gov. It’s expensive becoz high demand of export berjuta-juta to China. If you are tauke for premium durian, you still sell it like durian kampung price to China? Blame the tauke la wei.. every things want to control by Gov, go move to North Korea.

      Like or Dislike: Thumb up 8 Thumb down 10
    • stasta on Nov 14, 2017 at 11:42 am

      actually gov should put in place some form of export tax to discourage wholesale export of high quality durians. at least this way can retain some quantity for local consumption.

      Like or Dislike: Thumb up 1 Thumb down 0
  • disgruntled iriz driver on Nov 13, 2017 at 12:16 pm

    Beyond government’s control? You don’t say, sherlock! We heard the same thing during sammy vellu “saya bukan tuhan” debacle. The gov’t is full of justice league of cap’n obvious. Why can’t they just be transparent and admit that the nation is in deficit, we have things to fill *coughpocketscough, subsidies are naked to the eye but still exists within the abyss of political madness?

    For this news I shall echo on what has been a fad currently, and I quote as faithfully as possible: kepala bapak kau.

    Like or Dislike: Thumb up 36 Thumb down 1
    • Control on Nov 13, 2017 at 2:10 pm

      “He added the constantly changing price of crude oil was beyond the government’s control”… Then change to the government who can control!

      Like or Dislike: Thumb up 11 Thumb down 4
  • So called managed float system..how many times the retail oil price on local gas stations dip below RM2.00? Despite BCO dropped below
    US$50 or below, always put a blame on currencies exchange for putting off price drop. Full of craps. HAIZZZ.. POOR average Malaysian, road ahead is tough!

    Like or Dislike: Thumb up 29 Thumb down 1
  • john is otak batu on Nov 13, 2017 at 12:24 pm

    to maintain it ok but doesnt reflect what was the actual world crude oil pricing. subisidy is one thing, to tax RM0.50 per litre for all users is simply ridiculous.

    Like or Dislike: Thumb up 17 Thumb down 0
    • mana yg betui nie…. rakyat tanggung BERBILLION ringgit setiap bulan untuk subsidi minyak.

      Kenyit >>
      https://paultan.org/2017/10/31/kerajaan-masih-tanggung-subsidi-bahan-api-bernilai-jutaan-ringgit-walaupun-selepas-ia-dihapuskan-irwan/

      Like or Dislike: Thumb up 10 Thumb down 0
      • abah kau on Nov 14, 2017 at 12:51 pm

        ko masih percaya apa kerajaan kata?

        dulu harga myk dunia tinggi. mekanisme petrol mmg ada cukai ( sebab tu kerajaan tak berani GST kan petrol/diesel). dan lps tu, dia beri subsidi. tujuannya satu je.. supaya harga minyak stabil. tengok apa mahathir dan anwar buat dulu… harga minyak stabil RM1.05-1.10 di awal 90an. naik ke RM1.50 lbh krg new millenium.

        bila harga bahanapi stabil, harga barangan steady sbb kos transportation terkawal.

        Like or Dislike: Thumb up 5 Thumb down 0
  • sick&tired on Nov 13, 2017 at 12:36 pm

    We might not be the largest producer of oil, but we sure are one of the country with the highest car prices!

    And I love how he totally ignores that the government are raking in billions from GST!

    “Avoid causing hardship to people”!! My foot la!

    Like or Dislike: Thumb up 38 Thumb down 0
  • KenJi on Nov 13, 2017 at 12:42 pm

    Tahun 2008. Setong 140usd. Harga minyak 2.70. Patutnya 3.00 tp kerajaan subsidi 0.30 sen. Katanya lah. Tak tahu sama ada betul atau tidak. Sekarang setong baru sekitar 60usd, tapi harga ron 97 dah cecah 2.51. Apa barang?

    Like or Dislike: Thumb up 51 Thumb down 2
    • What barang? USD currency vs MYR currency differences and increased inflation after 10 years. That’s the barang.

      Like or Dislike: Thumb up 9 Thumb down 3
  • Ksatria on Nov 13, 2017 at 12:45 pm

    Deyy Formula mana??

    Like or Dislike: Thumb up 21 Thumb down 0
  • Kancil Hybrid on Nov 13, 2017 at 1:05 pm

    Pengapungan terkawal adalah cara terbaik utk memastikan rakyat menikmati harga minyak yg lebih rendah berbanding Singapura.

    Like or Dislike: Thumb up 2 Thumb down 16
  • Dumb people complain all the time. Smart people find ways to be better.

    Here’s your chance to be smarter.

    Fill up at Petronas. At least 50 ringgit. Ask for Lazada voucher from pump attendant. It says on the voucher 12% discount by using the code.

    Then log in to Lazada app. Look for Petronas gift card. RM100 credit for the price of RM95. Go to checkout. Apply the code from the voucher. Puffff!!! Now the price becomes RM80 plus.

    So, you wait for gift card to arrive. Next time you fill up. Use the gift card. Effectively, you just paid about RM2.05 per litre versus RM2.31 per litre.

    Or…. Alternatively, you wait again until 12.12.17 when Lazada sales return. At the right time, during the day, the RM100 gift card can go much cheaper than RM90 ringgit.

    Happy hunting.

    Like or Dislike: Thumb up 18 Thumb down 1
    • 12yrsold on Nov 13, 2017 at 4:55 pm

      Now that is what I call a sensible argument & factual even though I don’t like the price of petrol increase. Cheers…

      Like or Dislike: Thumb up 2 Thumb down 1
    • Whoops, minor mistake.

      After discount, you’re paying RM83.60 for the RM100 gift card.

      So, effectively you’re paying RM1.93 per litre, not RM2.05 per litre.

      Even better right???

      Like or Dislike: Thumb up 6 Thumb down 0
    • Disgruntled Iriz Driver on Nov 15, 2017 at 8:41 am

      A better, smarter argument would be to just ride motorcycles outright. With that, you dont even need to fuel up to 50 ringgit everytime just to get that voucher.

      Like or Dislike: Thumb up 0 Thumb down 1
  • sohai on Nov 13, 2017 at 1:33 pm

    the price is certainly beyond our control, but the risk that’s associate with it, is not.
    with a futures market, risks can be properly managed and it is the government’s job to do so.

    Like or Dislike: Thumb up 0 Thumb down 0
    • Ah Kow on Nov 13, 2017 at 4:44 pm

      Okay if petrol price beyond the Gov’s control, then improve on public transportation la. Then citizens at least have an option to commute to their work. If you all make it hard for us to commute to work, how are we going to feed you all with more income tax and GST? Think abit la.
      After all petrol will be obsolete one day, why not prepare for the future NOW?

      Like or Dislike: Thumb up 4 Thumb down 0
  • float the automotive industry la..

    Like or Dislike: Thumb up 1 Thumb down 0
  • Princess on Nov 13, 2017 at 2:41 pm

    Hmm.. much less oppo cybertro0pers nowadays. I tot this topic would explode with negative comments…!

    Like or Dislike: Thumb up 3 Thumb down 2
    • Former One on Nov 14, 2017 at 11:25 am

      They run out of money lor… jibby gloves off already. Now he go after them dr m style… where it hurts! Irony is dr m now with them… sigh…. our oppo really stupid la

      Like or Dislike: Thumb up 2 Thumb down 0
    • stasta on Nov 14, 2017 at 11:44 am

      most cybertrooper already jump ship to BN camp . because BN give incentives like samsung J7 and lately, fake powerbank hahaha.

      Like or Dislike: Thumb up 0 Thumb down 0
  • jinggo on Nov 13, 2017 at 3:10 pm

    Singapura takdak kuar minyak. Simpan sikit bod….

    Like or Dislike: Thumb up 11 Thumb down 0
  • xoxox on Nov 13, 2017 at 3:55 pm

    if the fuel price keep going up, the losers always be the consumer…all the good price will up due to diesel price too..

    Like or Dislike: Thumb up 1 Thumb down 0
  • old horse on Nov 13, 2017 at 4:56 pm

    It’s an economic management failure of the balance sheet

    Like or Dislike: Thumb up 3 Thumb down 0
  • Ji Kao on Nov 14, 2017 at 12:12 am

    The problem started when the value of ringgit decoupled with the price of oil.

    Like or Dislike: Thumb up 1 Thumb down 0
 

Add a comment

required

required