The government says it will ensure that Malaysians are not impacted by the rising global price of crude oil, which has touched US$80 (RM334) a barrel. According to minister in the prime minister’s department for economic affairs, Datuk Seri Mustapa Mohamed, the government is constantly studying the matter and will take appropriate action to reduce the burden on people, “This is important because on October 1, the price of crude oil in the global market reached US$80. As we all know, the ceiling price of diesel is RM2.15 and RON 95 petrol is RM2.05 per litre,” he said. The climb in global oil prices likely means that the government will be spending significantly more on fuel subsidies this year.
In June, finance minister Datuk Seri Tengku Zafrul Abdul Aziz had said the country would be spending an additional RM4.22 billion to maintain the ceiling prices that have been set for RON 95 petrol, diesel, liquefied petroleum gas (LPG) as well as cooking oil.
He added that the government was prepared to bear the increased subsidy expenditure to maintain the welfare of the people and the continuity of businesses, although at the current rate, the spend will inevitably be much higher than that estimated three months ago.
Mustapa added that Malaysia was also set to bump up its crude oil output, with the Organisation of the Petroleum Exporting Countries (OPEC) having decided that the country needed to increase petroleum production.
“The OPEC meeting last night decided that we should increase petroleum production to 400,000 barrels a day. It is to stabilise the price of crude oil in the global market and will last for several months,” he said at the Dewan Rakyat today. Mustapa was responding to a question from Wong Hon Wai (PH-Bukit Bendera) on the security situation of the global energy crisis and the direction to improve it in the country.
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Sometimes, as a consumer is very confuse what drive the hike of petrol price in Malaysia.
When global oil price goes up, Malaysia oil price at petrol station also goes up.
When global oil price goes down, Malaysia oil price at petrol station may or may not go down.
Logically, Malaysia as oil producing and oil exporter country will benefit from hike of oil price in turn will bring more revenue to the country. We believe this can offset some of the price or so call subsidy to the local market.
In contrast when oil market price goes down, our country revenue will go down, does it still offer the same level of subsidy to the local market? We can always complain why the global market price goes down, Malaysia petrol pump still high in price? Aren’t it should go down as well?
I believe it is the oil trading process. Many will agree that Malaysia produce one of the “sweetest” oil in the world. It is very high grade and high price. We usually export this oil to the advance country and in turn purchase oil from country like Saudi Arabia for our local market. So both selling and buying are driven by the oil market. This affect the consumer market as well.
We only earn the margin between selling our higher grade oil and buying Saudi oil for our consumption. If crude oil goes up, both rises the same percentage so basically we do not benefit from rising oil prices as selling and buying prices goes up in tandem. Only way we can truly benefit is by reducing consumption. Basically we need more people staying at home or WFH.
Yes. I think so.
Eventually life have to go back to normal regardless whether Covid 19 can be 100% cured. It is not the healthcare will suffer, our health, economy, country equally suffer.
For many, without money is no point to have health.
Perhaps efficient public transport can solve some of the oil consumption problem or opt for renewable energy and sustainable energy. EV car is a good move.
EV don’t solve the problem as we use fossil fuels to generate electricity so we still are reliant on that.
Change policies so that people earn more money not waste money on fuel subsidized
Subsidies are not for earning money on the backs of rakyat
Asal petrol 2.05 cheaper than 2.07 during PH era. Syukurrr
I rather they work just like how the US, whixh tax the oil and lower the imported car prices, also giving tax intensive to EVs, as we know, better car fuel economy, the less oil needed. Also taxed fuel means more EVs. I know some will say we still uses fuel to generate electricity, but just to inform we have solar farm also, just that they need to increase the size of it
LOL. No matter how much they flip the roti, USA is still the biggest consumer of fossil fuel, they merely switch usage from ICE cars into power plants burners. EV is just a mirage to assuage the rich that they are doing something “good” without sacrificing their lifestyle and lavish spending wastages.
I rather they work just like how the US, whixh tax the oil and lower the imported car prices, also giving tax intensive to EVs, as we know, better car fuel economy, the less oil needed. Also taxed fuel means more EVs. I know some will say we still uses fuel to generate electricity, but just to inform we have solar farm also, just that they need to increase the size of it
I rather they work just like how the US, whixh tax the oil and lower the imported car prices, also giving tax intensive to EVs, as we know, better car fuel economy, the less oil needed. Also taxed fuel means more EVs. I know some will say we still uses fuel to generate electricity, but just to inform we have solar farm also, just that they need to increase the size of it