Treasury sec-gen explains why crude oil price slide doesn’t translate to cheaper pump price.dpuf

Yeah, blame refineries for making bucketloads of money while feedstock prices are low.

Dateline 2016-01-07, Malay Mail:

Suggestions to further reduce the price of RON95 in tandem with the drop in crude oil rates are not feasible, Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah said.

This is because the crude oil price is not directly related to the retail of petroleum products, but is calculated based on the Automatic Pricing Mechanism (APM) instead.

“The cost of refined products for RON95 only decreased by 22 per cent from US$73 (RM323) per barrel to US$57 (RM253) for the past one year,” he was quoted by The Star daily as saying in a statement.

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