There must be a mistake here. One barrel of crude is equivalent to about 159 liters of crude. The gasoline you buy from the pump at the service stations is distilled from naptha, which is also distilled from crude. From crude to gasoline involves refining and associated refining costs. The new gasoline price at the pump of RM2.70 per liter translates to about US$132 per barrel. With crude now at US$125/bbl, the pump gasoline price in Malaysia of US$132/bbl is still below cost if you factor in refining, transportation, retail margin. Another reason why Malaysia cannot afford a permanent subsidy on oil like those middle east oil countries is that Malaysia's oil production is peanuts. The long term trend of Malaysia's oil reserves is declining, itself an alarming trend. Against this decling reserves, crude production is actually increasing in Malaysia, exarcebating the delining oil reserves. Also Malaysia is consuming domestically almost 2/3 of its oil production. You can imagine the unsustainable cost of subsidizing the domestic consumption. For every liter subsidized locally the country is robbing itself of opportunity foregone to export it at higher world market prices. The oil and energy subsidy, if continued in Malaysia permanently, in the light of Malaysia's relatively large domestic consumption and declining oil reserves, is a sure passage to state bankruptcy. Malaysia is not like those Middle East countries where their local domestic consumption as a percent of their total production is so tiny it does not register. An analogy is something like in Malaysia for every $100 earned from oil, $66 goes into subsidizing its motorists; whereas in the Middle East for every $100 earned from oil only $0.001 goes into subsidizing its domestic consumption.
how come venezuela rm0.16 per liter? Imagine my car - 60litre x rm9.60 full tank. But mas 60litre x rm2.70 = rm162.00. ???
Their gov charge so low, maybe they dun have money to build enough roads for u to use your full tank on hehe =p
I do not know the price of gasoline in Venezuela-that RM0.16/liter needs to be rechecked. Malaysia and Venezuela have about the same population size. But here ends the equality. Venezuela produces about 3.4 million bbl per day vs Malaysia's 660,000 bbl per day. Venezuela's oil reserves total 80 billion bbl vs Malaysia's 3.5 billion bbl. As I have said Malaysia is peanuts in oil production. It cannot afford to be a money tree like Venezuela. It won't be long before its oil reserves run out and then it will have to pay through its nose for oil it has to import in the future. This is already happening to Indonesia.
pemuda...the system in malaysia is too dark...angry also no use...maybe next election u go kepala batas(right place?) fight face to face with pm...all malaysian bcer will vote u...^^...
the mat only...i read in nanyang press...the writer say terengganu was full prepared for sukma(for badminton) with the mat one per 50k... hehe...my price sure acceptable...we as consumer know consumer thinking what...^^...
no...iraq has the world class road(before been bom......)because the oil cost are low...saddam hussein built a world class road in iraq...include straight road to jordan...i saw in tv...so nice...
forget to telll...the mat is really expensive...as me training wushu...the mat we use(as big as 6 badminton court)used up more than 100k...import from china...:crying:
Damn expensive hehe... 100k to step on Venezuela got lot of Ms Universe summore... Pretty girls + cheap oil... limsy gonna sort out court and badminton shop.. What are we waiting for?
Its good to reduce the subsidy. This will make Malaysians work harder to earn more money. Too much subsidy will make us contented and lazy.
Venezuela is ranked about 6 in the world in terms of most oil reserves. Malaysia is not even in the top20.
Rice $ increases 50% - eat KFC instead Petrol $ increase 40.625% - don't travel unnescessarily :crying::crying::crying::crying::crying:
I think this is true - Not specific to Malaysia but to the whole world. In UK for example there is no subsidies on fuel- infact the various taxes equate to around 54% of the price of Petrol/diesel, so the price per litre is £1.16 GBP for petrol. In farming however UK farmers get huge subsidies, which distorts the market against countries who could produce the food and under a free market sell at a higher price. In some circumstances farmers are paid not to farm on peices of land at all!
Shouldn't.. ..this thread/topic be put in this same thread, below??..Topic on gas price??..Anyway, if not, this can go on its own, since the complaint is abt the gas price in M'sian.. http://www.badmintoncentral.com/forums/showthread.php?t=26083&page=15 or here?? http://www.badmintoncentral.com/forums/showthread.php?t=46552
My colleagues have been discussing about this issue from day till night. They are thinking of going to work by bicycles as bicycles are the one and only transport which don't need petrol. Of course if u strong enough, u can choose to walk instead. (Imagine walking for five miles, it's sound like a crazy idea). Buying Vietnamese rice and having potatoes for lunch. Why Malaysian have to suffer from needless pain?
Malaysia produces on the average 650,00 barrels of crude per day. We consume about 400,000 barrels thus leaving 250,000 barrels for export. Three years ago the price of crude was about USD$30 per barrel. Today it is USD$130 - an increase of USD$100. There is hardly any increase in the production cost so that the extra USD100 can be considered as pure profit. Our 250,000 barrels of export should earn us 250,000 x 100 x 365 x 3 = RM27,375,000,000 (twenty seven billion Ringgit). But Petronas made a profit of well over RM70 billion, all of which belong to the Government. By all accounts the Government is flushed with money. In the first place the Government should not have floated the Ringgit. A floating rate creates uncertainties and we cannot gain anything from the strengthened Ringgit. Certainly the people have not experienced any increase in their purchasing power because of the appreciation in the exchange rate between the US Dollar and the Ringgit. Actually the Ringgit has increased by about 80 sen (from RM3.80 to RM3.08 to 1 US Dollar) per US Dollar, i.e. by more than 20 per cent. Had the Government retained the fixed rate system and increased the value of the Ringgit, say 10 per cent at a time, the cost of imports, in Ringgit terms can be monitored and reduced by 10 per cent. At 20 per cent appreciation the cost of imports should decrease by 20 per cent. But we know the prices of imported goods or services have not decreased at all. This means we are paying 20 per cent higher for our imports including the raw material and components for our industries. Since oil prices are fixed in US Dollar, the increase in US Dollar prices of oil should also be mitigated by 20 per cent in Malaysian Ringgit. But the Government wants to please the International Monetary Fund and the World Bank and decided to float the Ringgit. As a result the strengthening of the Ringgit merely increased our cost of exports without giving our people the benefit of lower cost of imports. But besides petrol the prices of palm oil, rubber and tin have also increased by about 400 per cent. Plantation companies and banks now earn as much as RM3 billion in profits each. Taxes paid by them must have also increased greatly.
