The government does not only consider the crude oil price but also other costs, such as for refinery and the processing, to determine the pump prices of fuel.
“It also has to calculate the margin for the industry of 19.54 sen per litre for petrol companies and 12.19 sen per litre for petrol stations, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said in the Dewan Rakyat today.
Shahrir, (No more calling him Datuk for me. If you notice I seldom refer any politician as Datuk, except Datuk Jessica Alba) it seems like you have completely gone over to the Dark Side. I used to respect you, as one of few UMNO members who has some intergrity and balls. Now you are spouting twisted, retarded bullshits for Malaysians to digest?
Let me remind you again, on June 5th, 2008, the government adjusted the fuel price to RM2.70 per litre. At that time, the world crude oil price was US$125 a barrel when the government restructured its oil subsidy scheme with petrol getting 30 sen a litre in subsidy. On June 8, the price shot up to US$139 a barrel and the average crude oil price for that month was US$132 a barrel and the government subsidised petrol by 64 sen a litre.
Based on that, our oil price (inclusive of tax and other costs) without subsidy was RM3.00 when the world crude oil price was US$125.
A quick calculation:
Petrol without subsidy = RM3.00 at US$125 per barrel
at USD 50, oil prices have dropped 60%.
Therefore, our petrol price (without subsidy) should be around RM1.20
So, we are paying RM0.80 per litre in “fuel tax” – a whopping 40% of the fuel price!!
Do you think we are idiots? The commissions have not changed at all. So how does it affect cost of fuel? Also, he cost of producing fuel is not borne by the govt, but by the oil companies and paid for by their fixed commissions. So it has absolutely ZERO impact on fuel prices!
Just like what this guy mentioned in his letter to Malaysiakini – Have we forgotten world crude oil prices have dropped?
In June, the government, in all its brilliance and intelligence, increased the price of fuel by 78 sen to RM2.70, justifying this increase to the increase of world crude oil prices to US$147 a barrel. However now, crude oil has fallen to US$62 a barrel.
Using my Standard 4 mathematics, if crude was at US$147 and the price of petrol went up to RM2.70 a litre, would it not mean that if crude oil price has dropped by half, petrol prices should be also half of RM2.70?
At the time of his writing, the world crude oil price was at US$62. Worst, if we use the world crude oil record price at US$147 a barrel and RM3 per litre petrol price (without subsidy) in Malaysia at that time as comparison, we should be getting RM1.02 per litre now WITHOUT SUBSIDY based on the current world crude oil price at US$50! But yet we are paying RM2.00? All because there are ‘other costs’ to be considered?
Are you telling us, the cost of oil production, exploration, and ‘other costs’ have increased a whopping 40-60% from June to November!!?
Fuck you! I am not that dumb, yet and I refused to be threaten as one. Do you?
ps: This is the best time to persuade Malaysians to abandon the subsidy mentality.