Diving Komodo 2018-11 7 of 8

February 6, 2019

Petrol dealers may lose up to RM40m

February 5, 2019

Dateline 2019-01-05, NST:

PETROL station operators claim they could lose up to RM40 million following the dip in petrol pump prices.

Petroleum Dealers Association of Malaysia president Datuk Khairul Annuar Abdul Aziz said the drop in fuel prices by 14 sen per litre for diesel and 27 sen per litre for RON95 and RON97 petrol would result in RM30 million to RM40 million in petroleum retail losses, based on existing fuel stock.

“All operators will have to bear with it,” he said.

The government had decided to reinstate the Automatic Fuel Pricing mechanism to determine fuel prices on a weekly basis.

Finance Minister Lim Guan Eng confirmed the adoption of the former managed float system while announcing the new petrol rates, which will take effect from today until Jan 11.

Aramco, Petronas near startup of Malaysia’s RAPID refinery

February 4, 2019

Dateline 2019-01-04, Oil & Gas Journal:

The jointly held Saudi AramcoPetronas $27-28 billion Pengerang Integrated Complex (PIC) in southeastern Johor, Malaysia, is preparing for official startup of Pengerang Refining & Petrochemical (PRefChem) subsidiary Pengerang Refining Co. Sdn. Bhd.’s 300,000-b/d refinery and petrochemical integrated development (RAPID) project (OGJ Online, Mar. 29, 2018).

Mechanical completion at PIC’s RAPID project was achieved on Nov. 29, 2018, and all critical units under contractor Petrofac Ltd.’s scope have now started commissioning activities in advance of the fire up of the refinery’s crude distillation unit later this month, the service provider said.

RON 95 petrol price will be capped at RM2.20 – LGE

February 3, 2019

Dateline 2019-01-02, Paul Tan:

The new weekly fuel price float system – which was supposed to go live today but is now scheduled to start later this week – will see RON 95 petrol prices capped at RM2.20 per litre, even if crude market price pushes the pump price beyond that level. This was revealed by finance minister Lim Guan Eng, reported by The Star.

Lim said the price float system was different from the previous government’s. “People will be paying less when petrol price drops but when it increases, they need not worry as any increase exceeding RM2.20 will be subsidised by the government,” he told reporters in Bukit Gelugor yesterday.

He explained that the implementation of the weekly price float was delayed because of objections from the Petrol Dealers Association of Malaysia (PDAM), adding that prime minister Tun Dr Mahathir Mohamad would hear the group out first before deciding on the prices, which would be announced after a cabinet meeting today.

Sarawak party urges state govt to impose 20pc sales tax on petroleum

February 2, 2019

Dateline 2018-12-30, Malay Mail:

State Reform Party (STAR) president Lina Soo today urged the Sarawak government to impose a 20 per cent sales tax on petroleum and petroleum products to fund schools and infrastructures.

She said the state government should also start a sovereign fund for the future generations from a certain percentage of the revenue collected from the sales tax.

“It is time that Sarawak starts looking after ourselves to catch up with the other states, instead of being their cash cow for as long as we remain in the Federation of Malaysia,” Soo said.

[OPINION] Returning petrol revenue to the rakyat may be easier said than done

February 1, 2019

Dateline 2018-12-29, Awani:

IT’S been called the black gold curse for a good reason.

In 2008, a movie was even produced with the title Curse of the Black Gold to depict how Nigeria, at a production rate of 2.1 million barrels a day and the sixth largest oil-producing country in the world is still subject to abject poverty and have not developed into a rich nation with the abundance of natural oil & gas resources at its disposal.

Msia to boost revenue in 2019 on higher oil price

January 31, 2019

Dateline 2018-12-28, NST:

Malaysia is expected to receive a boost in its revenue next year on higher oil price, with the local and global analysts predicting the Brent crude to rebound to around US$72-US$75 average a barrel for 2019.

Some analysts have projected as high as RM1.5 billion extra to the government’s coffers next year.

This will be on top of additional revenue gains of between RM4 billion and RM6 billion from new tax measures and government asset sales, as well as savings of around RM6 billion from the introduction of a targeted subsidy scheme, an analyst said.

According to a Bloomberg survey of oil analysts from the world’s biggest banks, the Brent benchmark is expected to rebound to average US$72.5 a barrel in 2019, more than 35 per cent higher than its current price of US$53.27 at press time.

MIDF Research chief economist Dr Kamaruddin Mohd Nor also expects a rebound in oil price but higher at US$75 per barrel.

“We are expecting the same (oil price rebound). This will be good for the government’s coffer,” he told NST Business.