Serious Matters

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.

By NoktahHitam

I am web developer, who's main concern is to save the trees. Nonetheless

122 replies on “Malaysian Petrol Price is Expensive”

nice one eddie. nice comparing. you’ve done well research. agak2 government buat tak kira2 macam awak buat nih? how come the fuel price is so expensive eh? sedangkan we are the producer. now i am wondering…

hope someone higher position will realize this issue.

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great analogy, should put things in perspective for most ppl. it’s funny that for so many years fuel prices stayed put, and increments were done so sparringly (10c was it in the mid-end 90s?). then the change of guards. before you know it, 30c increase!

i don’t completely blame petronas, the price is not set by them (although i bet they have some say in it). furthermore they have to support the other glcs when they ran short. petronas should be called malaysia inc, or rather, malaysia berhad.

Nice research, eddie. Great! Well done.

In my own opinion, I strongly feel that the money actually goes to Petronas itself. Then, they pay tax, that means the money goes to Government as well. Pi mai pi mai tang tu jugak…

But in order to lower the tax, they give their employees extremely high bonus. Tu yang berlagak sorang2 tuu…

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rajin giler ko eddie..
disebabkan ko buat kajian2 ni.. aku susah nk carik ko ..

hei..apa citer cpu yg giler tu?
sudahkan ko bermanja-manjaan dgn dia??

did he – DSAI – did a good job back then? I doubt so, considering the steep rise of oil prices now compared to the time he was the FM. As for KJ, he is stupid, enough said. IMO, using Petronas as a leverage/white knight in this situation wont solve anything. Let Petronas do what they do best, managing the nation’s treasures of black gold, for the sake of not just you or me, but our future generations as well. I’m not saying Govt is doing their best or the correct steps at the moment, far from it. Perhaps it is time for BNM/Govt to let go of RM, let the open market decides on its value, as it is currently undervalued at the moment. Look at the statistics and u’ll get what i mean..

I did a post like this using the same comparison like yours when the government increased the oil price and some stupid minister came out with some stupid comparison to justify that our oil price is still very cheap. 🙂

Just consider this, when last time the oil price is $20/barrel our oil price is at RM1. Now the oil price is more than S90/barrel, but our oil price now is RM1.92?!! How to justify that? And Malaysia is net exporter! Where the fark all the money go? Into somebody’s pocket?

And only idiots will agree that our cost living is low. I was browsing some discussion threads at Facebook and don’t be suprised to see statement like this, I quote :

“salary in comparison with cost of living is amongst the best.” (for Malaysia)

How retarded is that? And when I pointed out the obvious, they went berserk and flaming me along the line ‘ungrateful, we are still cheaper compare to bla bla…’ and yes, they ‘smartly’ converted the other countries currency back to RM and compared. WTF!

germs, come back later, I will reveal some wicked thoughts I have about the Gov. I’ll draw you some graphs.

Is it Khazanah or Petronas thats managing our resources? Either way, does it benefit you in some sort? Latest stats shows that Petronas gained up to 40% profit while other leading oil and gas company, 10-20%. I hope you get my point.

Bongkers, they think we’re stupid. Unfortunately we are.. but NOT THAT STUPID to fall for their petty tricks. I appreciate your point of view, thanks.

Look at us, we don’t have a minimum wage! While gov’s salary increased, how bout private sector?

“salary in comparison with cost of living is amongst the best.” (for Malaysia)… you want me to laugh or cry?? Retarded assholes.

Haiyo.. aku yang kerja oil n gas pun pening jugak fikir pasal harga minyak yang naik ni! have to think twice if nak drive g keja.

btw, aku rasa most of our oil production is controlled by outsider. not by ourselves – my company is one of that.

calon mana ni, ingat nak daftar kat tempat calon yang ni lah..buleh dak pangkah?

kekekek…nice job edwin masripan, tapi, aku terpikir sesuatu, kalau kau boleh membahasa melayu kan ape yang kau tulis ni, mungkin ada ramai lagi yang boleh baca kot.

bukan aku anti bahasa inggeris tapi dengan bahasa melayu, orang lebih mudah paham. atau kau nak aku translate kan?

pembaca kau bukan sume suka baca bahasa inggeris. so, apa kah yang kau kata kot?

FYI if you try the bigmac cost of living, ours is one of the highest and non-proportionate.. it’s a study using bigmac as a measurement of cost of living.. malaysia (as i recall) was in the top 5. a famous case study when i was in studying in melbourne uni.

and then there was also another human resource or management case study (can’t recall) on the division of power between the government and people. malaysia rank one of top 5 (maybe 3rd place). it shows how much power difference between govt and its civilians. it’s obvious that malaysians are very oppressed and obviously have almost no say in all govt policies.. even africa is doing way better than us in terms of power division standings.. even US is way lower than us.

are we, malaysians chicken and afraid of challenging the govt?

about petronas money, someone told me it all went to putrajaya through a series of capital transfers and company set ups.. try researching that ed. all i got is hearsay from a very, very reliable source.

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very true medea, if you can translate this into BM and put on your blog, I’d be happy to include your link.

I’m glad you understood my points well.

Calon? Calon isteri aku nak.. jadi calon ADUN xmau.

Thats almost impossible to track linie.

I am still looking for connection between Petronas and ECM Libra.

I’m pretty sure one day, someone will shut me out. Either bribe or ISA, I’m sure I can handle it 😉

susah nak cakap but still mesti ada sebab kenape harga naik.. dorang takkan sewenang je naikkan mesti ada fakta yang justifykan. just maybe they thought public tak dapat nak memahami jadi tak publickan info tu.

sebabkan takkan langsung tak ada orang dalam kerajaan ke petronas ke expose kalau the money earn go somewhere else?

takkan tak de yang rebel?

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public tak sebodoh yang disangka, and who are them to think what to publish and what not? if they practise transparency as they preach, they should do just that. or, maybe memang tak ada fakta to justify 🙂

maybe they sama sama makan, so why rebel? haha!

syia, kalau kene justify, then what about the RM 500 million commission for sub marine? RM4 billion Port Klang Free Zone ? RM 2 billion for smart tunnel? RM 2.5 billion profit on toll?

Banyak mende nak kene justify. Like I said, we are the producer and I have also compared that to UK cost of living. Tapi kenape mahal jugak myk kite?

Kene choose side wisely syia. Memang saye awak bole tanggung harge minyak, orang kampung ape cerite? budak keje kilang?

Me and my friends used to talk about this issue when the fuel price increase this few years. I really don’t know where do the money goes to.
As you said the government said compare to other country, our fuel prices consider very cheap already. This sentences I still remember until now. Don’t forget their their expenses was in USD , UK or Singapore. In Malaysia we just use RM only… if they keep increase the fuel prices, our economy will have Inflation very soon yet employee only get small amount of salary from their boss.

But I cant praise Mr. Anwar because that is an old stories of him. I can’t guarantee he won’t increase the fuel price if he still holding the same position.

On more thing I got no eyes to see my country. As I post this comment here probably I’ll let you guys scold. Mr prime minister said welcome foreigner to invest their business in Malaysia. At the end, why most of the foreigner doesn’t turn up to invest here? lets think carefully, You’re WELCOME to invest if you find a bumiputra partner in Malaysia. This is the secret you might need to know, my dear foreigners

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You got the last part wrong. Most of the suppliers in Malaysia are non bumis. The presence of a bumi for foreign investors is to ‘ease’ the paperworks. The rest is almost irrelevant. Take a closer look, who is monopolizing the market?

not a bumiputra partner. it has to be a partner who’s close to some ministers. if bumiputra partner, DEB would not have failed.

Hmm.. that one is related to PKK or MOF. Has nothing to do with foreign investors. You’ll understand once you grow older. Just something you ought to know, although gov give the business to bumis, only “SOME” will get the contract. The rest, cannot get. I know, because I was a shitty tender freak.

yeah..tepat skali..aku setuju dengan pendapat ko dan persamaan yang ko buat tentang durian tu….aku pon tak paham why still some malaysian didnt notice that our gas price in expensive much…RM10 is not enough for nowadays

Malaysia Fuel Price is Expensive | Noktah Hitam…

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 complain…

nice post eddy. as someone inside the oil business, i feel compelled to reply. here’s some facts to consider;

– true, our price is still among the cheapest (ex. thailand’s gasoline is 60% higher than us). and true, our problem is actually the disproportionate COST OF LIVING.

– true, we are a producing country (although non-OPEC). but the biggest producer in malaysia is ExxonMobil. most big oilfields in malaysia (Guntong, Dulang in offshore Terengganu) are theirs (meaning, they have the bigger share in the PSC). hell, our first deepwater oilfield (Kikeh) is operated by Murphy. the second & third (Malikai & Gumusut) are Shell’s. why? the same reason why these giant oil majors (ExxonMobil, BP, Shell, Chevron, ConocoPhillips, Total) are still relevant eventhough all the reserves are owned by the national oil companies like Petronas, Pertamina (Indon), PTTEP (thai) & Saudi Aramco (saudi) – TECHNOLOGY. we can’t push them away, bcos we depend on them. deepwater developments had just started in malaysia, it’ll take years before we could operate a deepwater oilfield on our own. Petronas Carigali has now become a full-fledged shallow water operator after years of partnerships with the oil majors (esp. Shell, hence Shell’s petrol stations could rival Petronas, if u dont cooperate @ kedekut ilmu you’ll get kicked out – read: BP). really, i once looked at a Petronas Technical Specs which is a carbon-copy of Shell’s, just that the Shell’s copy is decades older. true, Petronas is the controller, and all oil concessions (PSC – production-sharing-contracts) must involve Petronas, even if only 10%-20%. but if you’re saying price should be cheaper bcos we are a producing country, well i dont know about that.

– true, we are a producing country, but on the way in becoming a net importer.

– the problem is not with Petronas. Petronas is a well-run company, and if you walked & talked around enough you’ll know that hassan merican is an honorable & ethical leader. as a business entity, Petronas did well to do the best business with our high-grade oil (note: no crazy person would use a high-grade oil for fuel – only for producing refined chemicals) and churn out RM40b in net profit. the problem is.. ape lagi? the top people la, the ones above Petronas. even above Khazanah. like eddy said, his analogy with the house thing.

my point here, if you sit down and discuss this oil price in Malaysia issue with true oilmen who know the oil business (ppl from Shell, Petronas, ExxonMobil, Chevron, etc) and people from the major services companies (Schlumberger, Halliburton, SapuraCrest, Scomi) you’ll certainly get a different perspective & answers.

bro bedmate f1, keep up good postings like this, maybe noktahhitam will have a link at Malaysia Today 🙂

by the way, all the huha in here, korang ni dah register to vote blum?

youppe, I’m putting everything in layman’s term. Accountants, electronic, civil, students, wont have any idea what were you blaberring about. 😀

I had the liberty to sit down with him once (Merican). He was very quite. Undoubtedly one of the finest CEO in Malaysia.

Maybe I haven’t made myself clear here, I was referring to their social obligation. You know giving away cars for using their petrol is not enough. After all, they (Oil&Gas) are salvaging our Black Gold. The wealth should be shared, not kept. (read D. Trump)

Tak sempat register utk vote GE. Plus SPR pon tak umumkan ape2 pon. We are left in the dark (tak pon malap2). Bile nak pilihanraya, dan2 tu la ade sign board pg pejabat BN, JPN etc. :mrgreen: aku tgk perangai dorg.

ehehe… i might be a little carried away over there, sorry if it’s a lil bit technical 😀

i actually understand your point about Petronas. which why i said the problem is not Petronas, it’s the people above them. the nation’s oil & gas interest was privatized so that it will be run professionally as a business entity. that is Petronas’ ultimate function, and like any other well-managed corporation, they have performed and delivered record profit after record profit. in terms of their function, they have fulfilled it with style. but what the govt will do about the wealth is entirely not up to them. like any other listed company, they are only obliged to fulfill their portion of CSR (corporate social responsibilities – required by Bursa) hence all the scholarships, UTP, supercar prizes, etc given by them. apart from their CSR obligation, they really have no say to what their ultimate owner (govt lah) want to do with the money. whether to build KLCC, F1 circuit, PFKZ, n other gajah putih, or to divide and give all the money to the people, it’s up to the govt, not them. and as you said, the wealth should be shared. but the culprit is not Petronas, it’s you-know-who.

and i personally think the price is not our problem, it’s beyond our control (and actually the price here is still fair). the problem, like i said, is THE COST OF LIVING.

aisey.. pusing2 gak ko ni ek. You should have become debater back then. haha 😀

Both you and I can accept the fuel price, its just I pity the lower income class. The cost of living is like shit. Can you really be happy with all your money now? I dont think so. Nak kahwin pon kene ade 30k plus. Darn..

oh yeah…anyone heard of “peak oil” before?? youppe, if you are reading this…please would be cool to have an oilman’s perspective..maybe peak oil has direct relations to our country’s burgeoning prices~

hi N.H..

ok,straight 2 da point..I’m a student..i have 2 deliver a speech..persuasive speech actually..n the title of my speech is Malaysian Petrol Price is Expensive. Here i would like 2 have u 2 give me some ideas on how to start the speech.

idea such as intro to da speech..4 example, “definition of petrol” – sounds silly but jz 4 example, or watever la dat i can use 4 da intro to da speech)

Really hope 2 get a reply from u a.s.a.p keyh..

I’M IN OIL N GAS INDUSTRY,,N I WOULD LIKE TO TELL EVERYONE THAT MALAYSIAN PRODUCED FUEL IS THE NO.1 QUALITY OIL N OUR COUNTRY SELL THAT N BUY NO.3 FUEL FOR OUR USAGE..actly dosen’t metter la..sems govt r making money but,,why the f….k u increase the fuel price…

you said you read about the big mac index in melbourne uni? were you ASLEEP during that class…..???!

if you followed the big mac index over the years it would show that Malaysia has one of the LOWEST PPP adjusted price for BIG MACs…ie relative to our purchasing power BIG MACS are one of the CHEAPEST in the world!

Ppl WAKE UP! inflation is a fact all over the world, even in the US! so stop whining, start conserving! even if Anwar took power (or anyone else) they will for sure raise prices because the WORLD is raising prices.

PS: / you werent one of those ‘govt scholars’ were you?

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