Malaysian Petrol Price is Expensive

This is heck of a long post, read before you comment please.

Looking back at Anwar’s day from 1990 to 1998 as the Ministry of Finance. Our fuel price remained stagnant, RM 1.10 per liter. There was a time where the government increased by 3 cent, but eventually pushed back to its original price due to complains. Today, the oil price stood at RM1.92 per liter. I don’t want to praise Anwar for that matter, but he really did a good job.

There was one statement from KJ, fuel price should varies, depending on household income. Plain stupid or pure brainless? No I don’t think rich man will pay more for the same quality fuel the poor man is paying. This is no utopia, where everybody is warm and welcome, generous and transparent. I’ll give you a scenario, you go to a mamak stall, get yourself a roti canai and teh tarik. The guy who sits next to you is wearing a “washed” down cloth, while you on the other hand, like a gentlemen, prim and proper. The guy ordered the same thing. Once you’re done, your bill was RM1 higher than the guy. How does that make you feel? Silly of course! Heck, I won’t wear anything (except shorts) just to get a bargain and soon in the future, everyone will go topless. We’ll all look like orang asli.

Then comes Petronas. It was reported that Petronas made RM45.4 billion sales of crude oil from 192.4 million barrels. To whom these crude oil belongs to? Yes, you and me. Picture this, you stay with your siblings in a house full of antics. You brother and sister sells these antics but the profit never got to you. Some of the profit goes to the beautification of the house. Question, do you want to look good and be poor or look bad but rich? Neither is good. We want balance. So if Petronas gets richer, who/where does it go to?

“We are step daughters and sons”. Government tells us that, the price is already cheap compared to other nations, HELLLOOO, did you forget to multiply the cost-of-living ?

Let’s take UK for example, today’s fuel price is £0.990 per liter and the minimum wage is £5.52 per hour. Since we don’t have a minimum wage in Malaysia, I will assume the lowest pay will be RM3.50 per hour and fuel price of RM1.92 per liter. We’ll do some math with the lower ratio being bad/worst.

Minimum wage/fuel price liter.
UK – 5.757, Malaysia – 1.8229

We just took UK for example, and not other nations. If you round the figures above, we can see that UK’s buying power is 3 TIMES of ours. Now you get my point? Yet they still complain and we stood still, and say, “it’s ok-lah”.

Another thing I would like to point out is the crude oil trade. Let’s put this in durian term. We produce durian on seasonal basis and supply to other countries. Our durian (D24 grade) is priced roughly RM 10 per kg and UK’s price would be £3 per 100g. Do the math and you get about 19.4 times the price in Malaysia to enjoy the “king of fruits” in UK. It’s reasonable because;

  1. UK don’t produce durian, hence expensive logistics.
  2. We produce durian, hence cheaper logistics.
  3. We import from Thailand, competition keeps the price low.
  4. Hard to find durian in UK, demand is high, hence expensive.
  5. Easy to find durian in Malaysia, demand is average, introduce competitions hence cheaper.

It doesn’t make sense? Allow me to relate.

  1. UK don’t produce oil, hence expensive logistics etc but affordable than Malaysia and why?
  2. We produce oil, cheaper logistics, local refinery etc and export to other nations, highly priced. Good sales!
  3. We import from other 3rd world countries, refined and sold to citizens at a very high price, why? Can’t we contra from the sales made from export?
  4. Easy to find fuel in UK, demand is high but kept at affordable price.
  5. Easy to find fuel in Malaysia but expensive.

Did you catch my point? In short, somewhere along the process, we are being robbed of our own property. Be it the government, Petronas or any oil & gas company.

After reading this, do you think the government is fair? Do you feel slightly educated? Did I mislead you from the “Tak Apa” (“It’s OK”) attitude? If yes, I’m glad I did my part.

Can old folks live with their pension money afford these petrol rates? How about those living in rural areas, farmers or rubber tappers, earning RM1.20 per hour? Yes, I am against the Government (as a matter of fact, you should too!). What ever I’m fighting for, I’m doing it for the nation. If not for you, it’s for your kids. So think, act and react..

PS: I am an average Joe. I am unhappy about the fuel price in Malaysia. Shed some lights if I got any of these information wrong.

122 Comments on “Malaysian Petrol Price is Expensive

  1. All prices are approximate prices as on 3 June 08
    Following is the list of Nations paying for Petrol.

    First let us take a look bout this chart
    UAE– RM1.19/litre
    Eygpt– RM1.03/litre
    Bahrain– RM0.87/litre
    Qatar– RM0.68/litre
    Kuwait– RM0.67/litre
    Saudi Arabia– RM0.38/litre
    Iran– RM0.35/litre
    Nigeria– RM0.32/litre
    Turkmenistan– RM0.25/litre
    Venezuela– RM0.16/litre
    China- RM2.35/litre
    Brunei- RM1.20/litre
    MALAYSIA– RM2.70/litre

    Second Let us check bout this
    Country GDP – per capita ($)
    Hong Kong – 36,500
    Malaysia – 12,700
    Iran – 8,900
    Venezuala – 6,900

    Third let us check this out
    Premium Unleaded petrol price in
    Hong Kong is : Rs 84.10 per litre = RM 8.94 per litre
    MALAYSIA is : Rs 25.40 per litre = RM 2.70 per litre

    Say the GDP between Malaysia and Hong Kong is 1 : 2.87
    Meaning RM 2.70 : RM 8.94/2.87
    = RM 2.70 : RM 3.11

    1.Turkey : Rs 113.30 per litre
    2.Norway (Oslo) : Rs 112 per litre
    3. United Kingdom: Rs 95.50 per litre
    4. Hong Kong : Rs 84.10 per litre

    Hong Kong is now the world top four cosliest petrol consumer. Malaysia is one of the petrol producer and yet it is having a rate that almost same like Hong Kong.

    I really hv no more words to say bout Malaysia but in sorrows, pains and suffering and I can only wish this country a very GOOD LUCK!!!

    Reply to This comment

  2. Ya, good posting……………..

    One thing I agreed the most is our nation are oil producer . This sources should be share between all of us ( ALL MALAYSIAN ). But , where is the profits goes?

    Previously we learn in our secondary GEOGRAPHIC reference book, states that we gain big profit from petroleum as it has high and excellent quality. Correspondent of this, we import the cheaper quality for our own uses. From that, PETRONAS GAIN big profits….

    BUT still wonder why the nation still will affected by the market oil price!………


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    Oliver replied #1

    It is said that the profits that they own now is for our next generation (Oh what a sweet talk). Since the peoples are dying now so how can they consider for our next generation. For me it is all COW-SENSE.

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  3. From the passed time, if we look on the expenditure of our government. For examples, send our first astronaut to the space, built the first class airport, and the most important….Our beloved Prime Minister Abdullah private ship……… …… …. … .. .. .. .. .

    Can we as a citizen of Malaysia understand why our nation all this thing? Why we send the first astronaut to the space since the nation space tech. yet not reach sophisticate status? Wat can 1 Billion do? For us it mean alots. But, for the government, just an amount !!!

    Why we built the first class airport? Is that to show everyone around the world that we are reach?

    One more thing, the ship belongs to Prime Minister, can somebody explain the ship story belong to Pak Lah?………………………………………………………………………………………………………….

    Built the South-North Highway for example, there are big amount of monies spend by government on this project, but after ther PLUS independent, wat the hell the PLUS do, is to raise the toll fees? or something internal that hidden from all of us!..

    Actually, I dunno why I will talk like this, eventhough wat i want to express myself actually……………………………………………………..
    just haiz……………….

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  4. Dear friend,

    Days and weeks have gone by since the rise of fuel prices here in Malaysia. I’m now really feeling the pressure of the fuel hike as my salary will NOT be reviewed by my employer. As part of the working Sabahan community and a proud owner of the citizenship of Malaysia, I am grieving.

    Talk in town is that MOST is against the fuel hike and how it has affected their livelihood. These people (who some are good friends of mine) have had to fork out more in regards to traveling expenses. These people mostly earn a mere RM900 per month, paying RM300 for their Kancil or even RM500 for Kelisa and the rest for bills, household, etc. You must be thinking, “Why buy a car in the first place when they cannot afford?” Well, the main cause would be the embarrasing state of our public transport and also their safety. Dear readers, please understand, some places in Kota Kinabalu, when you reach your destination or waiting for a bus, you either get mugged, harassed by certain characters (if you’re not a guy) and etc. Some buses even when you take a ride on them, it is equivalent to being on a passenger side of a F1 car during a race. That my dear friends are “Sabah Public Transport”. I would also like to point out though this might not happen everyday (except F1-driving buses) , when it does, would you like it to happen to you? Definitely no, hence it’s supposed to be safer driving your own car. But then again, the safety of your wallet will be in jeopardy.

    How bout those who can afford? I have those type of friend also which agrees with the fuel hike. I understand that they think it’s wise as it is good for our Malaysian Economy. I also in part agree in this but why do the people need to be in poverty when the country is rich? Does maximizing our country’s gains means we need to eat sub-standard rice? (which also cost you) or we need to grow our own chili in our backyard just to have a taste if it? (if you can afford a backyard). It’s a condition chalked up by veteran politician in Sabah who recently released a statement of telling us Sabahans that we are plummeting towards “being poor people in a rich state”.

    How about the RM625 that was handed out to cushion the fuel price hike? Honestly tell me dear reader, did it actually help you? I serviced my car and change tyres the other day and, well, let’s just say i had to pay more than “RM625” (some parts had to be changed as I travel alot), hence now i’m thinking on how to fill up my fuel to go to work. Did I mis-manage my cash? How about you? What did you do with the RM625? You might say, “the goverment is trying to help”, but I as a regular Sabahan-Joe feel that it did not actually help. Well, it did in the present but how bout the long run?Do i need to wait everytime i renew my roadtax to service my car when most of my cash goes to my fuel tank?

    Although what i have typed does not reflect 100% views of Sabahans, those with income as low as mine will agree and believe me, there are ALOT of people in Sabah who are along the poverty line (earning below RM600 and are mostly rural folks) and this is the FACT as Sabah is among the top 2 poorest state in Malaysia.

    I am sorry that i didn’t mention the struggles of my countrymen in the Semenanjung in terms of the recent fuel hike but I know the pain we endure here in Sabah is also your felt by you. Let’s put our heads together and do the right thing. I don’t have to say what that is but i know you understand.

    Just my point of view.

    RobinHood’s last blog post..The 20 Points of Sabah

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  5. they did not realize that they need to apply the economic basics to maximize users’ satisfaction.

    they should show the statistics, demand and supply figures. bring the numbers from the digging until the oil gets into the car.

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  6. that’s a lot of comments but since world petrol prices are down i suggest that the goverment should also reduce it’s prices. Althought Im a singaporean, I support malaysia more. Anwar for Prime Minister and fuck singapore!

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  7. easy to talk only. like the way increase is fine but dun always follow other country currency rate. that mean our petrol in malaysia cheap but the ciziten can not support their style living… if wan to compare can we also need to compare with other country salary rate.. example like singapore is double rate so $900 that mean our money is RM1800.. they can afford it. how about us eat also have problem why because the food very expensive. but they can still survive. example like they can having their MC D just one set is below than $8 but our country must spend more than RM 8.. so i hope when do it must think first

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    NoktahHitam replied #1

    so, what’s your point exactly?

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  8. all put together very nicely..
    but, its kinda funny when u put it in durian term!
    because in UK, durian never be high in demand..
    that one u dont want to argue..

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  9. Hi,

    You have a point there. But I personally have a different opinion about this topic.

    Lets take the same antics example. Picture this, you are living in a house with full of antics and are selling them out. One guy from your village is willing to pay RM1 to buy one antic while another guy from village B is paying RM3.8 for one antic and also other guy from village C is paying RM6. As a business man, who would you sell it to?

    A normal businessman will sell it to the guy paying RM6. Well, not that you wont sell anything at all to the guy who pay RM1, but you sell a lesser quality one to him. Business is like that, the higher price you pay, the better thing/service you get. You pay low price, you buy a kancil. You pay high price, you get a BMW.

    The problem is not Malaysia selling our petrol overseas. Malaysia has to sell petrol for the nation’s income and economy. Of course, the businessman will sell it to the one who pays the highest price. (And there is no question that Petronas wont, for any reason, share their fortune with you) — your bother and sister take the trouble & difficulties to sell the antics from your house, they deserve the money that they earn. —

    The problem is Malaysian currency is lower than most other Western countries. That is the main and also complicated problem. Of course, one way to solve this (improve this situation) is to encourage export and reduce import. One of the exports is petrol. If Malaysia stop selling petrol overseas, that may impact of our economy growth and currency.

    Please note that I don’t belong to any government bodies or oil company. I am just a uni student and this is my personal opinion which may not reflect the truth and is open for discussion.

    Thanks for starting this interesting topic.


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  10. The Malaysia govt is mad. As an American citizen, I call this discrination. After buying a house to live here in Malaysia, they want to increase the petrol price. Now I got to pay more for gasoline because of stupid Malaysian politician. They should fix the corruption at Petronas and the PM.

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  11. salam…just wait n see…what will happen when the oil price spike to RM3.50 this coming August 2010…’kiamat’ is upon us….wassalam

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  12. Expensive is a relative word unless followed by a number! I think the price is still reasonable but the problem is with the salaries. They are just too low. either lower the price of everything or give everyone a raise. regards

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  13. you are very resourceful and rajin. i wont be able to do the comparison that u’ve done. i landed on your page pun because i’m searching something regarding about the current issues for my muet test. and pasal minyak sume orang tak puas hati. thanks for the information and math calculation. it helps cause im not into the politik and hal yang berlaku in malaysia ni. semua ni cam crap. bye.

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  14. Thank you for a well written article with some good comments from readers. Fuel subsidy issues are being raised in Brunei too so i am sending your article to my friends to read to get another side of the story. Cheers!

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  15. oh yay.. “good research”… blah blah blah…….. don’t see you going forward physically and do something about it…

    i’m so mighty behind the computer keyboard… bla bla bla…. *pffttt….. work harder and get a raise lah..

    y don’t u do a comparison on how much the gvnm is helping u guys rather than the rest. here’s a simple one, bumi-properties are at least 3% cheaper…

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    NoktahHitam replied #1

    Wow, shallow.

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  16. Ur comment is stupid. The world every 10 years. Price do goes up due to population increase.

    You can’t compare the Life in Malaysia and UK. U want to be like UK, UK petrol is expensive than Malaysia. The oil price is higher than us since UK also import oil you stupid fool.

    Oil is limited. Even Dubai oil almost already run out. I think u r dumb enough not to realise that oil limited.

    Did u know Malaysia government is the rich but at the same time the poorest government. Government spend money on everything.

    Why dont u move to Indonesia, where the government there dont give damn about u. If u are a woman, u already sold in the black market become a prostitute.

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    NoktahHitam replied #1

    Pointless talking to people who’s emotionally fucked up.

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  17. don’t u thnk that goverment have spent more in subsidy than the other welfare? subsidy make malaysia become poor and poor because of our own malaysian! they buying in subsidy price then sold in to neighborehood country with higherst price……… that unfair! so beter they survive by own than cheat our money!!!!!!!!!!!

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  18. (source:
    Senarai negara yang mempunyai simpanan minyak terbesar di dunia
    # 1 Saudi Arabia: 262,700,000,000 barrels (tong)
    # 2 Canada: 178,900,000,000 barrels
    # 3 Iran: 133,300,000,000 barrels
    # 4 Iraq: 112,500,000,000 barrels
    # 5 United Arab Emirates: 97,800,000,000 barrels
    # 6 Kuwait: 96,500,000,000 barrels
    # 7 Venezuela: 75,590,000,000 barrels
    # 8 Russia: 69,000,000,000 barrels
    # 9 Libya: 40,000,000,000 barrels
    # 10 Nigeria: 36,000,000,000 barrels
    # 11 Mexico: 33,310,000,000 barrels
    # 12 Kazakhstan: 26,000,000,000 barrels
    # 13 Angola: 25,000,000,000 barrels
    # 14 United States: 22,450,000,000 barrels
    # 15 China: 18,260,000,000 barrels
    # 16 Qatar: 16,000,000,000 barrels
    # 17 Brazil: 15,120,000,000 barrels
    # 18 Algeria: 12,460,000,000 barrels
    # 19 Norway: 9,859,000,000 barrels
    # 20 Oman: 6,100,000,000 barrels
    # 21 India: 5,700,000,000 barrels
    # 22 Indonesia: 4,600,000,000 barrels
    # 23 Ecuador: 4,512,000,000 barrels
    # 24 United Kingdom: 4,500,000,000 barrels
    # 25 Yemen: 4,370,000,000 barrels
    # 26 Australia: 3,664,000,000 barrels
    # 27 Malaysia: 3,100,000,000 barrels
    # 28 Argentina: 2,950,000,000 barrels
    # 29 Egypt: 2,700,000,000 barrels
    # 30 Syria: 2,500,000,000 barrels
    # 31 Gabon: 1,921,000,000 barrels
    # 32 Tunisia: 1,700,000,000 barrels
    # 33 Sudan: 1,600,000,000 barrels
    # 34 Congo, Democratic Republic of the: 1,538,000,000 barrels
    # 35 Colombia: 1,492,000,000 barrels
    # 36 Brunei: 1,255,000,000 barrels
    # 37 Denmark: 1,230,000,000 barrels
    # 38 Romania: 1,055,000,000 barrels
    = 39 Mauritania: 1,000,000,000 barrels
    = 39 Burma: 1,000,000,000 barrels
    # 41 Trinidad and Tobago: 990,000,000 barrels
    = 42 Vietnam: 600,000,000 barrels
    = 42 Uzbekistan: 600,000,000 barrels
    # 44 Azerbaijan: 589,000,000 barrels
    # 45 Italy: 586,600,000 barrels
    # 46 Thailand: 583,000,000 barrels
    # 47 Equatorial Guinea: 563,500,000 barrels
    # 48 Cuba: 532,000,000 barrels
    # 49 Bolivia: 458,800,000 barrels
    # 50 Germany: 395,800,000 barrels

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