April 18, 2017
Dateline 2017-03-14, Cilisos:
Just 3 years ago, Malaysia was still a country with petrol subsidies, but that all changed when the gomen decided they weren’t going to pay for those subsidies anymore. Malaysia then moved to a float system, where the prices of petrol locally would be determined monthly by the prices worldwide.
For the longest time, our Editor-In-Chief had been wanting for one of us writers to write about how these monthly petrol prices in Malaysia are calculated. Sadly, it kept getting postponed either because of something more current or we just forgot. In fact, our saudara at SOSCILI ended up writing about it before us.
With the price of petrol and diesel going up in the past 2 months, we thought it would be a good time to translate their article. But as soon as this writer started researching about the topic, we realised that some major changes are coming where petrol prices are concerned.
September 3, 2016
Dateline 2016-08-04, Borneo Post Online:
The retail prices of petrol and diesel for the month of August are set under the managed float mechanism as promised by the government with no hidden taxes involved, says Second Finance Minister Datuk Johari Abdul Ghani.
He was responding to claims by opposition MP Rafizi Ramli that oil prices are manipulated to enable the government to collect ‘hidden taxes’.
Speaking to reporters at a Hari Raya Aidilfitri function organised by Perbadanan Nasional Bhd here yesterday, Johari said the prices of RON95 and RON97 petrol for August were maintained at RM1.75 and RM2.10 a litre respectively while diesel price was raised by 10 sen to RM1.80 a litre.
Johari said although crude oil prices on the market were quite high in June and July, the government did not raise retail oil prices for the two months out of concern and consideration for the people.
November 19, 2015
Putrajaya gets told a lot, don’t you think?
Dateline 2015-10-13, TMI:
Pakatan Harapan today urged Putrajaya to revamp the formula to determine local fuel prices by switching the reference currency from the US dollar to the ringgit. This, they said, would protect Malaysians from high fuel prices because of the continuous drop in the value of the ringgit in recent months.
“The formula to determine the actual true and fair price of fuel is the cost of crude oil and its processing to refine it to RON95 added with the guarantee of profit to oil companies,” Rafizi Ramli, who is PKR secretary-general, said in a press conference today
November 7, 2015
Whine, whine. Remember, this is post-Budget 2016.
Dateline 2015-10-01, TMI:
Putrajaya must explain the petrol price hike this month, when global crude oil price continues to fall, DAP Socialist Youth (Dapsy) said today.
The party Youth wing’s publicity chief, Junz Wong, said there was no reason for the government to raise the fuel price by 10 sen per litre.
“Brent crude oil price closed at US$48.20 a barrel yesterday, according to Reuters, about 10% lower than last month.
“Malaysians should be looking forward to cheaper oil prices in 2015 as there were no signs of recovery in the price of oil,” said Wong in a statement today.
August 20, 2015
Dateline 2015-07-02, Malaysiakini:
Petrol prices at the pump have gone up by 10 sen to RM2.15 per litre for RON95 and 20 sen to RM2.55 for RON97 for the month of July 2015. This is despite the price of Brent crude oil per barrel trending downwards for the month of June 2015 versus May 2015.
However, retail petrol prices have gone up because the price of Brent per barrel is only one component out of several which go into the calculation of the Mean of Platts Singapore (MOPS) benchmark price which is used under Malaysia’s managed float system which came into place on Dec 1, 2014.
From then onwards, retail petrol prices are set based on a month-to-month basis based on an average of MOPS prices plus a fixed margin for oil companies and retailers.
February 10, 2015
Dateline 2014-11-25, Malaysia Reserve:
The government will intervene and re-introduce fuel subsidy if world oil prices rise again, says Deputy Finance Minister Datuk Chua Tee Yong.
He said the government has not abandoned its three-tiered fuel subsidy mechanism and that the targeted subsidy system for fuel is still being finalised by the Ministry of Domestic Trade, Cooperatives and Consumerism.
Chua’s statement came on the heels of the government’s announcement last Friday that the fuel subsidy for non-premium RON95 petrol and diesel would be abolished on Dec 1 and the fuel would be priced based on the monthly average world price of crude oil on a floating mechanism.
The move coincided with the falling global crude oil prices, which is expected to continue for some time.
Chua said yesterday that the government will remove the floating fuel price for RON97 and imposed the three-tiered subsidy mechanism if the global crude price hits the government’s target price.
February 7, 2015
Weren’t dealers complaining recently that they were not making enough money?
Dateline 2014-11-24, The Malaysian Insider:
The government’s move to scrap the fuel subsidy and base the prices of RON95 petrol and diesel on a managed float system starting next month means that the rakyat will have to bear the extra burden of guaranteeing the profits of oil companies and petrol dealers, a PKR lawmaker said today.
Party secretary-general Rafizi Ramli said this was because under Malaysia’s version of the managed float system, about 30 sen was padded into the per litre cost of petrol and diesel, which was for profits guaranteed to oil and gas companies and petrol dealers.
This covers their costs of transportation, distribution, marketing and operations and also protects them from global price fluctuations.