The federal government of Malaysia will require more time to decide on the possibilities of lowering the retail price of fuels in the country, despite current downward trend of global crude oil prices, reported the New Straits Times.
The Malaysian government needs to take into account many factors, including the current financial capabilities and allocation for economic activities which have multiplier effects, economy minister Rafizi Ramli said.
“This is beyond the issue on the (price setting formula), but more importantly, the current economic situation,” Rafizi said, noting that with the current global crude oil price between US$83 to US$85 per barrel (RM364 to RM373 per barrel), some have said that the price of crude oil has dropped over the past four to five months.
“Hence, when the global crude oil price has dropped, is it enough for us to lower the retail fuel price? Of course, for those who understand the oil and gas sector, [they] will be asking the question,” Rafizi said, adding that the government will have to study its financial capabilities before reviewing the retail prices of fuels.
Rafizi added that the formula for deciding the retail prices of fuels in Malaysia continues to be relevant, and that the formula should be retained as it takes into account the changes in global crude oil prices as well as the suitable ceiling price for fuel.
In June this year, then-finance minister Tengku Datuk Seri Zafrul Abdul Aziz said that the fuel subsidies will reach RM30 billion this year, with a projection made based on Brent oil price. Last week, newly appointed prime minister Datuk Seri Anwar Ibrahim said that relevant government ministries have been given two weeks to discuss and analyse the matter of targeted subsidies, including for fuel.
The ceiling price of RON 95 petrol is RM2.05 per litre, which was set by the Malaysian government in February 2021. As of December 1, 2022, the retail price of RON 97 petrol is RM3.85 per litre, or a 10 sen drop from the preceding week, which ended an eight-week run of being priced at RM3.95 per litre since the previous adjustment from RM4 per litre on October 6.
Diesel fuels, meanwhile, also continue at their respective ceiling prices of RM2.15 per litre for Euro 5 B10 and B20 blends, while Euro 5 B7 diesel continues at RM2.35 per litre.
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I do second a more thorough and effective subsidy system to aid the lower income group but bear in mind, the middle and higher income groups are taxed a lot to fund the subsidy programme. So by right these groups of contributors should also get to enjoy whatever subsidies. The loopholes and misuse of the subsidy system should tackle as well!
U agree for a thorough subsidy program to aid the lower income group but at the same time said higher income group should also enjoy the subsidy. In that case, no change is needed then. Its like saying a factory operator should be able to drive the MD luxury car every now and then as that operator contribute to the profit that makes it possible for the MD to buy that car. OMG i just realise i am entitled to fly onboard the Malaysian Gomen official aircraft, i better make my way to the airport right away.
If u ask me, remove fuel subsidy in phases. Why? Misuse comes in many shape and sizes. If one uses the subsidise fuel to go lepak, enjoy with girlfriend at vacation spot, go to casino to gamble, go to 4d shop, drive or ride like maniac, etc….misuse?
Fully remove subsidy, and remove AP and reduce tax all aspect in the meanwhile increase Brim to whop needed because most of them ride kapcai or own 1 vehicle.
Better don’t remove fuel subsidy, will hurt all car owners that uses petrol or diesel
I think we will never come to a common agreement on how the subsidy should be delivered, even among the rakyat.
First, we need to decide if we accept this thing being politicised.
Second, we need to decide if we agree taxation is a redistribution of wealth from rich to poor. I know this one sure hot topic.
Lastly, I personally think we should make the subsidy simple. Country decide a max value of subsidy, let say, RM15b. Next, divide that equally for all Malaysian with valid drivers license, let say 20m. That’s just RM750 each person, per year. Now make people go apply for it every 3 month for rm187.5. For the really poor, that’s probably going to be a quick help. For the very rich, they probably scoff at the amount say its not worth their time.
This way, the rich can’t abuse the system getting thousands in subsidy filling up their land yachts, and the needy still get stuff. Everyone get fair share.
Will it work? Probably not, because Malaysians mostly just want others to do the hard work and not want to be part of the solutions. Not all, but the noisy ones at least.
Make price more cheaper
Make price slightly more expensive. Make driving more expensive. Not to let people avoid driving but to avoid people speeding and waste fuel unnecessarily. Less speeding car, less pollution, less accident.
But make price fuel more cheaper and even cheaper
I like this. Make driving expensive. Take all the fuel subsidy and put into public transportation.
Now there’s viable alternative. Those who doesn’t want to pay can still get good public transport. Those who pay expensive petrol can have smoother traffic.
Maybe remove expensive car tax too, so people can own dream car but just can’t afford to drive it often, better than can’t afford to own in the first place.
As promised dsi during pru15
As above or was it another janji dicapati?
ron92 petrol already less than RM 1.50/L many moons ago
We want RM1.50! Dislike if u agree with me.
Lets put it this way.
If price of crude oil is high,Petronas gets profits about Rm100 B .It has been our source ,mainly for subsidies.
If it drops to half,Petronas only earns about 40-50 B..So it cant be a bank of last resort,forever.
So,if the petrol price is floated,at RM3.50/litre..the transportation sector will pass on the cost to consumers.
Every damn egg,school shoe,tambang bas sekolah,laptop,furniture will skyrocket.
You can protect B40 with targeted subsidies,but manufacturers cant hold back price increase for even your roti channai or gardenia bread.
So,it is not an easy decision,to please everyone.
At least Rafizi and Co didnt keep bashing BMW owners like his predecessor.
Fuel subsidies is too addictive.It is hard to imagine life without it,alto in the long term it depletes our resources,which could have been deployed in welfare or education or health sectors.
U all don’t have other things to do other than this?
Still waiting rafizi to announce cheaper myvi at rm25k and civic at rm67k based on his formula.
Yes also please stop protectionism by protecting national cars
ya you can get that at used car shop. no need formula for that.
harga minyak diesel harus turun mendadak..
baru kos pengangkutan bahan mentah dapat di kawal… minyak diesel naik.. harga barang naik.. bila turun kenapa harga barang tak turun… adakah mainan politik
As long as it’s RM1.50/L petrol, i don’t mind
Well considering back in April 2020 world price is lower than USD$20 while our RON95 was set lowest hovering around RM1.25/L so you guess it USD$80 is still 4x the price of the lowest.
Im so used to paying the current amount, i actually dont mind paying the same. Especially in the future if there is another spike in fuel prices, i just hope gomen is willing to subsidize again.
That said, i do understand folks wanting lower prices.
Janji turun harga minyak kasi jadi, ini kalilah
his formula going to tong sampah already..
Harga minyak ni harus turun, Bugatti Divo aku ni mahu isi minyak V-Power Racing @ RM1.50/Liter. Minyak tak turun, harga kang kung pun x turun.
Baca sajalah,komen sini pun bukan org terima atau dgr cakap kita,sekadar hidupkan ruangan komen blog paultan sahaja.Lain la dapat hadiah ker,voucer ker atas idea yang baik.Jgn marah paultan.org
TU la dulu kerja membangkang jer. 24jam konon. Esok konon. Lapiji ingat handle kerajaan ni mcm pegang main duit pondok-pondok???? hanat la raja pomula ni
Sebagai negara pengeluar minyak sepatutnya harga petrol dalam negeri kita mesti terendah.
Subsidise petrol, you subsidise traffic jam because more will drive, then the subsidy is burnt when everyone is stuck in the jam. So we are burning away good money!
Even if the fuel price reduce to RM1.50 other consumer products will not reduce. But if it increase the everything increase. Float the fuel price but regulate the price through petronas so other oil companies have to follow suit. Cut the margin of petronas. Their staff are enjoying fat check despite being part of government and making money out of our national natural resource. I don’t believe its people are brighter than those in other industries.