We always find it hard to predict the petrol price in Malaysia, especially for the past few weeks. The actual petrol price is always below the predicted one. Today, we found an interesting Facebook article by Ahmad Nazhri Mohd Zain discussing the flat petrol price issue in the past 35 days period before the 14th Malaysian General Election (GE14).
How much money does the Gomen subsidize?
Here is the list of RON95 prices if it was a normal “musim”.
|Week||Predicted Price (RM)||Actual Price (RM)||Subsidy (RM)|
|March 22-28, 2018||2.20||2.20||0.00|
|March 29-Apr 04, 2018||2.30||2.20||0.10|
|Apr 05-11, 2018||2.29||2.20||0.09|
|Apr 12-18, 2018||2.25||2.20||0.05|
|Apr 19-25, 2018||2.32||2.20||0.12|
|April 26-May 02||2.34||2.20||0.14|
As of 2015, Malaysia’s consumption of Diesel & Petrol is 22.2 million tonnes of energy equivalent or 22,185 ktoe or 158 million barrels.
This equates to 434 thousand barrels of oil per day.
Remember this is 2015, let’s just make the calculation easy and use 500 thousand barrels of diesel & petrol is consumed every day.
So for the past 35 days, the government has given an average of 10 sen a litre of subsidy.
So let’s break it down, shall we?
500,000 barrels per day is equivalent to 79,500,000 litres of diesel and Petrol per day. So a 10 sen subsidy equates to about 8 million ringgit of subsidy a day.
Thus, for the past 30 days, the gomen has shelled out 240 million ringgit of subsidy (42% of which goes to the T20).
So, for those who commented: “See the price of petrol is in the hands of the gomen!” … the right statement would be
“The gomen can decide to give subsidy or not”
The government has decided to give subsidy during the GE14 period. It COMES with a cost. The government CANNOT control the price of oil in the world market but it can decide if it wants to subsidise the cost. For the past 30 days, it has cost the govt at least 240 million ringgit. 240 million that could have been used for other things. But because Malaysians are whining wankers, the govt decided not to make it an election issue. Losing 45 billion ringgit when the GST is abolished by the Opposition within a hundred days if they come to power is a lot, lot, lot worse than what the govt is spending on the petrol subsidy during this GE14 period
Replacing GST with SST will add another 28 billion ringgit in a shortfall in the government revenue. Malaysian govt projected that they were going to collect 17.7 billion ringgit of SST in 2014 and 4.4 billion ringgit for 2015 (3 months of the collection before GST came into force on 1st April). In 2013, the govt collected 16.1 billion ringgit in SST. So you can see the difference between SST and GST.
The information provided is for discussion purposes only and it should not be construed as personal or professional advice. Petrol Price Malaysia does not give any warranty on accuracy, completeness, functionality, usefulness or other assurances as to the content appearing in this article. Petrol Price Malaysia disclaims all responsibility for any losses, damage to property or personal injury suffered directly or indirectly from reliance on such information.