Fuel prices reduced by 10 sen

KUALA LUMPUR: The retail price of petrol and diesel will be reduced by 10 sen a litre each effective Wednesday, Prime Minister Datuk Seri Abdullah Ahmad Badawi has announced.

The price of petrol RON97 will be reduced from RM2.00 a litre to RM1.90, RON92 petrol to RM1.80 from RM1.90 and diesel to RM1.80 from RM1.90.
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Malaysians force to donate to avoid govt policy from collapse - ref Malaysiakini

KUALA LUMPUR — Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad revealed today the government has stopped subsidising petrol since Nov 1 and has been effectively collecting taxes instead on petrol consumption.

Speaking to reporters in Parliament, he explained that even after the 15-sen drop today, which saw RON97 petrol dropping to RM2 per litre, and RON92 and diesel down to RM1.90, the government was no longer subsidising petrol at the pumps.

"Even if prices return to RM1.92, we will still have a bit of surplus," he said, adding that subsidies had disappeared once the global price of oil had dipped under US$65 per barrel.

Current prices are hovering at US$55 per barrel.

As oil companies take a 19-sen cut and fuel station operators take 12 sen, it can be inferred that the cost price of RON97 petrol is currently below RM1.61 if the government can still generate income at RM1.92.

Shahrir explained that the difference between petrol pump prices and the cost plus commission for the companies and operators was being returned to the government effectively as a form of tax.

This gels with the 2009 Budget winding-up speech by Finance Minister Datuk Seri Najib Razak where he claimed a projected RM7 billion savings in fuel subsidies will be utilised to stimulate the troubled economy.

The statement was puzzling as the government had earlier said it would maintain a 30-sen fuel subsidy to keep pump prices below market prices.

Shahrir also projected that with RM21 billion budgeted for fuel subsidies in 2009 and subsidies for 2007, when prices had averaged US$65 per barrel, amounting to RM8.8 billion, savings from fuel subsidies would be far more than RM7 billion.

"If crude oil stays under US$60 per barrel, I am expecting at least RM10 billion," he said.

He also added that subsidies for diesel and natural gas are still in place.

Shahrir, however, explained that this did not mean that the people were not being helped by the government.

"We are still giving the RM625 road tax rebate for cars and RM150 for motorbikes that goes straight into your pocket," he said, referring to the rebate announced when RON97 shot up to RM2.70.

"So the rebate is for when the people suffered for about three months," he said.

The Johor Baru MP had called a press conference to announce that a total cost of RM21.4 billion had been incurred by the government up to October this year due to tax exemptions and subsidies for fuel against RM16.2 billion last year.

This, however, is without tax exemption figures for October 2008.

He also said that government would consider a floor price for fuel.(TheMalaysianinsider)

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Petrol prices reduced to 15sen by today

PETALING JAYA: Petrol and diesel prices have been slashed by a further 15 sen per litre from today.

The new pump price for RON97 is now RM2 per litre while RON92 will be sold at RM1.90 per litre. Diesel will be at RM1.90 per litre.

The latest price cut, the fifth since August, was announced by Deputy Prime Minister Datuk Seri Najib Tun Razak yesterday.

Najib said the reduction was made in line with falling global petroleum prices.

Yesterday’s price of a barrel of crude was about US$56.

Najib, who is also Finance Minister, urged traders to lower prices of goods and services to fully benefit the people following the fuel reduction.

“The people should also continue to use petrol and diesel sparingly despite the lower price in line with the Government’s efficient energy consumption plan,” he said.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said the Government had kept its promise to reduce petrol prices.

Abdullah, who is on a working visit to Uzbekistan, said consumers should boycott outlets which refused to lower prices.

“I have been told that there is a non-governmental organisation spearheading this move. They have my support,” he told Malaysian reporters in the Uzbek capital Tashkent.

He said the people would be angry with the Government because prices of goods were still high.

“The Government had kept its promise but traders are not doing their part,” he said.

Abdullah said more NGOs should come forward and advise consumers where to shop.

“You can work together and get consumers to shun traders who pofiteer. We have to do this or else prices would not come down,” he added.

Meanwhile, petroleum dealers said they would feel the pinch with the latest fuel price reduction.

Malaysian Petroleum Dealers’ Association acting president Abdul Wahid Bidin said: “We hope this reduction will be the last. Otherwise, we won’t be able to plan ahead and doing business will be very difficult.” (TheStar)

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Petrol price should not be less than RM1.92/L - Shahrir

PETALING JAYA (29 Oct): The minimum price of petrol should be RM1.92 per litre even if the global oil price continues to fall, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said.

He said this would bring some stability to the retail price of petrol and minimise losses by petrol station owners.

Setting a minimum price would also enable the Government to reduce its subsidy on petrol if the global price fell further.

“The upper limit will be RM2.70 and it is my feeling that this is the optimal range,” Shahrir said when commenting on the losses petrol station dealers face whenever the price of petrol is reduced.

Ahmad Sarpur, a dealer in Johor, said dealers could lose between RM13,000 and RM25,000 each time petrol is reduced by 15 sen per litre.

“This is because there is a minimum order quantity of 21,000 litres that we must pay for immediately. There is no credit,” he said.

“If the petrol is delivered in the morning and the price is reduced at night, we have to sell petrol 15 sen cheaper than what we had paid for it.”

However, Shahrir said the Govern ment had been fair to the dealers saying: “We have not reduced their margin of 12 sen per litre after it was increased in June and we will try as much as we can to keep upcoming price reductions to 15 sen at a time.”

Shahrir said this meant a minimal loss of three sen per litre.

Ahmad pointed out that it was difficult for dealers to hedge on prices as they were not given prior notice of price changes. He said the dealers should be given three days’ warning before a price change to carry their optimal amount of stock.(TheStar)

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