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View Full Version : Petrol price up 1st. Oct?



KH EE
29-09-2004, 12:38 PM
my little bird said up by between 2 to 7 sen per litre...

from http://www.nst.com.my/Current_News/NST/Wednesday/National/20040929073834/Article/indexb_html

Rocketing oil prices may see subsidy reduction
Rajan Moses, KUALA LUMPUR, Sept 28:
-----------------------------------------------------------

World oil prices rocketed to a record of over US$50 (RM190) a barrel yesterday, fuelled by a spate of disruptions to global supply and casting doubt on whether the Government will be able to sustain hefty petroleum subsidies that have thus far kept domestic pump prices among the lowest in the region.

Global market players said they saw oil prices spiralling up further, predicting a leap to between US$52 and US$60 a barrel, as all the ingredients for a world price explosion appeared to be in place. "If this trend is sustained for some time, then it will become a burden and too high a budgetary outlay for the Government to continue subsidising petroleum products," said Dr Yeah Kim Leng, chief economist at Rating Agency Malaysia.

The Government may try to bear the burden of subsidies for as long as possible, but if prices rise unabated, the authorities would have no choice but to start removing the subsidies in stages, he told Business Times.

The pump price of petrol here is set at RM1.37 a litre, much lower than in Singapore or Thailand, and is supported by a government subsidy of 1.04 sen a litre.

The Government spends a staggering RM9 billion annually to maintain petrol and diesel prices, of which RM3 billion is paid out as subsidies and the remaining RM6 billion is for exemption from sales tax.

Without subsidies, petrol prices here would be around RM2 a litre. The last time the Government increased fuel prices was on May 2, by two sen.

Economists said because the country is an open economy and heavily dependent on exports, it is open to the risk of being buffeted by the negative impact of high oil prices on the rest of the world. That could crimp demand for Malaysian products and slow domestic manufacturing activity.

German Finance Minister Hans Eichel warned ahead of Friday's Group of Seven meeting in Washington that global growth would be at risk if oil prices remained at current levels. High oil prices raise the cost of doing business and providing services, breed inflation, dampen sentiment in stock markets and the corporate world, and tend to reduce overall demand.

Prime Minister Datuk Seri Abdullah Ahmad Badawi did not rein in oil subsidies in Budget 2005, released on Sept 10, instead adopting a wait-and-see attitude.

Lately, officials have signalled that the Government is studying and is committed to gradually reducing overall subsidies, including for petrol, to reduce its financial burden, cut the budget deficit and channel funds towards development.

The inflation rate for Malaysia is still one of the lowest in the region and is expected to average between 1.3 and 1.5 per cent for 2004. If inflation surges in tandem with the gradual removal of oil subsidies, then the Government will have to take measures to keep it in check.

rakyat
29-09-2004, 02:17 PM
I ve alway been dumbfounded by our official inflation rate of 2% & below. What basket of goods r we using? Cigarette, beer, poultry product, petrol, roti canai, cars, houses & imported gds r not in the basket?

Ask the man on the street & they will tell u the real inflation. Something like 10 yrs ago RM25k can buy a new Jap. car or RM250k can buy a decent terrace hse in PJ /KL. Or children used to go to school w. a few cents buy still had enough.

Bout comparing petrol prices w. Thailand & Singapore is misleading as we r net xporter of petrol & they import. More accurate to compare prices in Brunei or Indon.

just my 2 cents or these days my RM20

JoeJaffar
29-09-2004, 02:32 PM
I'm all for reduction or removal of the petrol subsidies, but the Goverment must use the savings to good use.

tnn
29-09-2004, 02:35 PM
yep! i agree. things are getting more costly that our salary can't even keep up.

i still wonder why our car prices is still one of the highest in asia region? don't we have the most tolled roads in asia too?

the rakyat is feeling the pinch. will the government stop and feel our pinch?

yankeat
29-09-2004, 03:42 PM
Government should really improve the public transportation first before removing the subsidy of petrol. If m'sia's public transportation is as efficient as singapore's or even china's, i wouldn't bother if they increase petrol by up to RM1.

orchipalar
30-09-2004, 08:36 AM
Originally posted by tnn
yep! i agree. things are getting more costly that our salary can't even keep up.
i still wonder why our car prices is still one of the highest in asia region? don't we have the most tolled roads in asia too?
the rakyat is feeling the pinch. will the government stop and feel our pinch?

Err...Rakyat(not the generalized one):) ...may be feeling the pinch...ahem....but Orchi has been feeling the punch instead...sa lu te! Mana lagi....hanya malaysia-bo leh!(as in hokkien?)

Ahem..IF you are thinking about feeling the pinch....*Sigh*....Orchi is afraid the worst is yet to come...n it be coming very very soon indeed....GST!:mad:

rakyat
30-09-2004, 09:10 AM
Another issue that is giving me nightmare - GST

When I mention the intension of the govt. to my boss (Jap) first thing he said was that the poor will now subsidise the rich!
Eg. a person earning less than RM2k a mth need not pay income tax but when he buys milk fr his baby or rice he will have to pay tax equal to a director earning RM25k a mth.

Better keep lotsa 1 cent coins as we will face with roti canai fr 63 cents & tea tarik fr 1.76.

Even in my introduction course in taxation, the fallancies of GST was made vry clear. The countries which implemented it later would remedie it via tax rebate but those who hv experience with tax rebate in M'sia will atest - its a hassle to say the least.

Maybe GST on luxury gds (imports?) not necessities and benchmark the refund process (meaning within the same year?)

kcyong999
30-09-2004, 09:27 AM
complaint about Car price and Petrol price ?....


I believe that boycott our own Proton Car and Petronas Petrol will decrease the car and petrol price....

We will only support them once everything is in reasonable price.
if you bought our local made proton car at Europe is even cheaper than Malaysia

Once the petrol price gone up, the petrol price WILL NEVER DROP back again...... they claim petrol price is getting higher and higher in all over the world, so they increase the price, but once the petrol price become reasonable, we will still enjoy the HIGH PRICE.

if you think Car price is expensive, and switch to buy proton, that is what governemnt want : )...so our car will always be expensive

if you continue support Petronas, and they will enjoy the great profit.....so our petrol will always be expensive

how many of you drive Proton ? how many of you fuel your car with Petronas ?

that's what i think .....

orchipalar
30-09-2004, 09:41 AM
Err...as far as Orchi believes...Goods n Services Tax....similar to our neighbouring Singapore...everything from A - Z are affected...whether it is locally produced or imported from abroad..as long as it is being served or provided to you...

ALL traders...enterprises...companies...private or otherwise..are to be registered with the relevant trade development board...a GIRO account would be given...for all tax transaction purpose would be done electronically thru various relevant finance departments n the financial institutions....such as accounts with customs...banks...n traders....whereby GST would be collected at the point of entries...or point of sales....

High consumers tax items such as tobacco n ciggies....booze...cars...n rest would have their existing import tax...more or less intact!:mad:

rakyat
30-09-2004, 10:11 AM
Collecting fr the buying public is fine & easy but remitance of such taxes r cumbersome xpecially small traders who do not hv proper a/c. They will take the opportunity to charge the additional 5 or 15% and it goes straight into their pocket. End result - cost of gds increase, administration process increase, cost of collecting taxes increase but tax collected will b minimum.

As fr the boycott of proton & petronas (I personally do not own a proton nor use petronas) will not work as it would mean more public $$ used to prop up 'national interest' (Proton) which is not in business but more fr 'national pride'.
If it was set up purely fr business - the 'invisible hand' would have close it down yrs ago.

Who said petronas is not enjoying 'great profit'? And a big pecentage of the profit comes fr b/4 the petrol kiosk - refining, export of crude & ect. Hence the effect of the boycott would b minimum & only effect the minority shareholders as only that part of the business is open fr the public to invest i.e. EPF, Tabung haji and investing joes.:mad:

rakyat
30-09-2004, 10:13 AM
"Y don't u hv higher inheritance tax?" asked a knowledgable foreigner :confused:

JoeJaffar
30-09-2004, 01:38 PM
petrol price will never go down once it's increased, that's a gimmee. but bear in mind that the price has been subsidized all the time, even when the market price of oil is considered low. so at any time, the taxpayers are subsidizing the petrol price. only the quantum of the subsidies are changing depending on the actual price and the controlled price. it'll still not reflecting the actual market price for malaysian petrol.

if a particular consumer feels that the GST, in a way, means the poor are subsidizing the rich, then petrol subsidies work in the similar way. those who have vehicles that are petrol-guzzlers are being subsidized by owners who own efficient vehicles. and those who drive less are subsidizing those who travels more.

only if the savings from the reduced petrol subsidies are going to be put to good use, such as more schools, teachers, better public transport etc then the benefits can be seen and felt by all. but that's a big IF.

KH EE
30-09-2004, 01:50 PM
from http://www.nst.com.my/Current_News/NST/Thursday/National/20040930075447/Article/indexb_html

Higher petrol prices appear inevitable
KUALA LUMPUR, Sept 29:
-----------------------------------------------------------
Consumers should brace themselves for an increase in petrol prices.

However, Domestic Trade and Consumer Affairs Minister Datuk Mohd Shafie Apdal was non-committal when asked today whether the hike was imminent.

"I don't know, it might be tomorrow, day after tomorrow or next month," he said.

But analysts believed it would be difficult for petrol prices to remain unchanged following the sharp increase in world oil prices, which hit a record high of over US$50 (RM190) a barrel yesterday.

Global market players predict a leap to between US$52 and US$60 a barrel, as all the ingredients for a world price explosion appeared to be in place.

Shafie said the Government was now spending between RM70 and RM80 million a month in petroleum subsidies. For this year alone, the amount has topped RM4.6 billion.

Last year, petroleum subsidies stood at RM6.8 billon compared to RM4.3 billion in 2002 and RM7.4 billion in 2001. "The subsidy is a burden to the Government and it is better that we use the money for other development like infrastructure and education," Shafie said, adding that higher fuel prices might reduce smuggling of the commodity to neighbouring countries.

Petrol prices have risen by 25 per cent since the Government gradually cut subsidies beginning 2000. The last increase was in May, when prices were revised upwards by two sen.

This saw RON97 petrol being retailed at RM1.37 per litre in peninsular Malaysia, RM1.35 in Sabah and RM1.36 in Sarawak, while RON92 petrol retails at RM1.33 per litre nationwide. Diesel, meanwhile, is sold at 78.1 sen per litre in the peninsula, 78.4 sen in Sabah and 77.8 sen in Sarawak. LPG is sold at RM1.35 per kilo in the peninsula and RM1.43 in Sabah and Sarawak.
------------------------------
Hiya, Shafie so shy to say-lah but it'll be up 2morow... Go up also don't want to tell ppl... maybe waiting for pak lah's OK? :rolleyes:

satish
30-09-2004, 07:09 PM
Its official folks..its goes up tomm.
Bernama carried the news.

Petrol, Diesel And Gas Prices Up By 5 Sen From Friday
KUALA LUMPUR, Sept 30 (Bernama) -- The price of petrol, diesel and gas will be increased by 5 sen per litre or per kg from Friday as a result of higher crude oil prices on the global market, the Domestic Trade and Consumer Affairs Ministry announced here Thursday.

jadewhite
30-09-2004, 07:26 PM
Wicked eh! There would be a change reaction soon. Prices for others goods wil lface an increase too

Hopefully, the government will intervene here. Traders might used this as a golden opportunity to jack up price of goods. Hopefully the increase is not exhorbitant O!!! And at the end the losing one would be the consumer.

Cindy Kee
30-09-2004, 11:02 PM
The subsidy is a burden to the Government and it is better that we use the money for other development like infrastructure and education," Shafie said.

The subsidy of petroleum 'benefits' everybody. The money for other development like education benefits certain race only if Shafie Salleh has his way. By the way, which discipline did he get his doctorate in? Race Relations?

orchipalar
01-10-2004, 12:40 AM
Err...talking about the government's burdening fuel subsidy...not too long ago...Orchi mentioned something closely related to..err...the Gross National Income per Capita(or whichever economic sense being used for it) of our malaysia-boleh nation...should be enough for everbody to endulge in 'decent benefits' such as improvements of development in infrasture ... healthcare...education...welfare...n resources.. etc.. etc..

In the frantic race to make up for statistics n sheer numbers game...millions of human relations were 'honoured' or 'welcomed'...with the citizenship or otherwise...to 'compete' n reap..or...err...'share the same wealth'...so to speak...with the rest of the growing 'polulations'...:rolleyes:

So now...are we still talking about the same burdens?...suffered by whom?...the government?....or the rakyat jelata?:mad:

AbuseYouDNA
01-10-2004, 11:54 AM
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Okie guys....this is only the first wave that we r experiencing rite now....
As i noe...there will another 5 cents coming in soon....that is wat i heard from a fren working in a petroleum company in cyberjaya....
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Say No to Abuse,
Abuse you do not abuse...

KH EE
01-10-2004, 12:38 PM
AbuseYouDNA, ur fren's right - there'll be another increase b4 the year's out... :mad:

Why can't the govt inform us of the "gradual" increase b4hand?
:confused:

What is there to hide? Come out with a schedule to say when the increase will be... As if we will convert our petrol tanks to that of some Thai's vehicle... Or buy up all we can @ the old price & store it in our premises... Sheesh... :rolleyes:

Now look out for the spiral effect - increase in TNB rates? Foodstuff? Transport? Ohhhh. here it comes... :mad: :confused: :rolleyes:

satish
01-10-2004, 12:42 PM
Any of you noticed the massive traffic jams last nite?
Most of the people were trying to get their car tanks filled up.
A visitor to our house toook 1 hr to get frm the KFC entrance to USJ11 at 6:30pm!
CHeers!

KH EE
01-10-2004, 12:58 PM
satish, imagine how much more petrol was used just driving to the petrol station &, gosh, being caught up in this jam... :rolleyes:

if your car's tank has a capacity of 50litres, then, assuming it's almost empty, you can then save about 50 X 5sen=Rm2.50 - worthwhile to top up???

so till Oct 31 - sunday/halloween - a possible 5sen increase?, we'll pump again... :D

rakyat
01-10-2004, 01:04 PM
What another increase by 31 oct:confused:
Tell me its a joke or rumours

Better renegotiate my mileage claim as the rate we r going, I might end up subsidising my company:(

kwchang
01-10-2004, 01:04 PM
I think it is silly to rush for the last fill at old prices. Let's say a petrol tank's capacity is 50 litres. A full tank at RM1.37/lit will cost RM68.50. With a 5sen increase, the same full tank costs RM71.00. How much can one save? - RM2.50 for a full tank ! Waiting in queue with you engine running wastes petrol. All that savings goes up in smoke and the cars add tons of pollution. What can a saving of RM2.50 do? Buy you 2 issues of your daily newspaper? 1 and a half glass of teh-tarik? One plate of nasi campur with no meat?

It is amazing how people work out their maths. A good example of being penny wise pound foolish. Tsk,tsk,tsk,...sigh

ps - KH EE already said the above while I was editing my post. :)

KH EE
01-10-2004, 01:12 PM
my next car will be a diesel one-lah! :D ;)

satish
01-10-2004, 02:19 PM
KH,
Good that u r thinking of "green engine" Diesel vehicle..non polluting the enviroment.(but spewing out black soot!)
U also will have another type of problem. Try to pass the JPJ
vehicle smoke tests, during their operasi..
U will have to go to Puspakom to get that summom cleared!
Either way..the car owners lose.
But I think petrol vehicles are cheaper to maintain, compared to diesel. ( u have to decarbonise the engine at fixed intervals).
CHeers!

KH EE
01-10-2004, 02:24 PM
maybe hv to do like s'poreans - drive only on weekends & on weekdays, use motorbike... but must get license first... :D

fRaNkY
01-10-2004, 02:37 PM
Singapore people have the luxury of feeder bus to MRT station.
Some 35cents and MRT rides S2.20.

USJ ar? aiyoh. If you take the bus, guarantee reach office at 10am! after vomitting so many time of the smelly arm pits!

The nearest LRT is either Kelana Jaya or Amcorp station. It will cost about Rm10 of taxi fare.

I tried once taking the LRT from my office to Kelana Jaya and then a bus to Subang Parade and another bus to USJ 14. I get out at 5pm and reach home 8.30 because no bus from Kelaja Jaya!

Worst if I drive on Federal Highway. With the jam, it is cheaper, less fuel and faster via NPE (RM3.20).

No choice. Car is stil a must........ How nice they bring back the Mini buses. 60cents onli mar

AbuseYouDNA
01-10-2004, 03:14 PM
Hmmmpppphhhh :rolleyes: ...i think everythin gotta do with Shell...MobileExxon..n kawan-kawan...

Just last week ago, i tuned in to the Bloomberg Tv.....there was a debate bout Oiling Company crisis.....I never really focus on it coz i was surfin www.UsJ.com.my.....i hearf that few major oiling company had been experiencing some difficulties....

I dunno...correct me if i am wrong.....maybe our government helping them or...??? dunno....

ConSpiRacy ThOerY???tak tau la....,
do noT Abuse(DNA)
:p

keroncong_asli
01-10-2004, 05:06 PM
Quote : I think it is silly to rush for the last fill at old prices. Let's say a petrol tank's capacity is 50 litres. A full tank at RM1.37/lit will cost RM68.50.
________________________________________________
You bet.
Some ppl especially house-wives will walk from Fajar Summit across to Giant USJ 1 just to get an item which is 50 sen cheaper. They feel so contented about it, my god ........ Donno whether guys do that too.

kwchang
01-10-2004, 05:18 PM
I wonder if anyone thinks before driving 5 Km to get something with a savings of 50sen when the petrol and time used would have cancelled out any savings? For example, driving to Carrefour from USJ when Taipan or Giant is nearer.

keroncong_asli
01-10-2004, 05:39 PM
Some ppl got a habit (include myself) of being attracted to free gifts. Originally no intention to buy, but because of plastic cup foc, finally we buy it. Best joke, the cup will be in the cupboard left untouch for months .............

jeya
05-10-2004, 05:35 PM
I dont know if you guys have noticed that many provisions and groceries sold at Giant ,Carrefour and elsewhere have steadily been going up without being noticed..even before the petrol hike..and nobody complains.

Why, we just buy want we want and dont remember the price you paid before.

I do keep track of prices, just for eg. a brand of powdered milk which i used to pay RM 9.50 is today Rm10.90 so what are we complaining about the other price increases in town.

Eveything is going up whether you like it or not and we have to stomach their justifications.
The unscrupulous buisness men are waiting to exploit this festive season ..they have stocked up..have you?

orchipalar
05-10-2004, 06:10 PM
Err...Jeya:) ...should Orchi's calculation isn't as bad as Orchi's English....that accounts to 14.7% increase from the earlier selling price....:eek:

CCY
05-10-2004, 07:50 PM
My kids transport charges increases 10% . Like it or not . Maybe to consider changing jobs to be kereta sapu .Probably make more relatively .Only have to work afew hours total daily .
Hope that the toll stays at it is

orchipalar
05-10-2004, 08:08 PM
Err...always...like every other enforcement are concerned...otherthan from Inland Revenue....they are proven to be weak...or of insignificant for mentioning in here.....to any good n effective countermeasures taken to curb this here price hikes of all freaking necessities.....:(

Malaysians are generally forgetful n forgiving lots...soon the episodes would be all over....n people just have to bend backwards paying for these price hikes....silently.:(

At the same time....Fomca...or any consumers organizations for the matter....would soon run out of steam...in addressing these issues...which are affecting our livelihood daily...

Sampai bila harus kami menelan kesengsaraan terhadap perkara perkara sedemikian!~ sering terpedaya dan terus bercakap cakap kosong sahaja!:mad:

KH EE
06-10-2004, 10:59 AM
saw yesterday's phone interview with the Domestic Minister, Shafie Apdal, who said that controlled items cannopt be sold above the ceiling price but he didn't say anything abt the uncontrolled items... so, if his ministry isn't doing anything, then it's a field day for the manufacturers/distributors/retailers... :confused: :rolleyes:

uchangeng
06-10-2004, 11:52 AM
The last time the government raised the price of flour by 10 cent a kilo, a roti canai man added 10 cent a pc. to his roti that cost him less than 100 g of the raw material! When questioned, he was adamant about the public outcry but nevertheless relanted. Blatant profiteer.

The petrol price increase is a gradual one. From what we read in the press, over the last 4 years or so, if i am not wrong, it has risen steadily by as much as 19 cent a litre. More than 15% already. But, the government insists we are still the cheapest. Being a net petroluem exporter, receiving billions of oil royalty each year, by comparison, our fuel cost is no better than our net importer neighbor, e.g Thailand.

Well, may be we need the extra money for our political stability!

jeya
06-10-2004, 12:24 PM
I heard this yesterday, ikan kembong sold at RM9.50 per kilo in a market in a posh area of Shah Alam and it is Rm 4.50 at the market in Sri Muda,Shah Alam so what do you say about this.

So it is the buisness men who control the market not the Fomca or Govt authorities. They sell at their whims and fancies and as long as there are buyers who dont complain or boycott these increases and disparity of prices will carry on under are very noses.

Yesterday I had a bowl of soup mee and eventhough the price remained the same RM3.50 I would hardy call it soup mee...it was more aji no moto soup than mee:mad:

These are the same hawkers who live in Mansions and have children studying overseas and are laughing all the way to the banks.