RON95 Petrol Price Calculation Formula for Malaysia (in RM per litre)

RON95 Petrol Price Formula Malaysia

Are you looking for the ultimate formula that decides how much you need to pay for your Petrol every day? The Malaysia Petrol Price costings were calculated based on the Automatic Pricing Mechanism (APM) system implemented since 2nd April 1983.

Here is the formula:

RON95 Petrol Price = Cost of Product (MOPS) + ( Alpha + Operation Cost + Oil Companies’ Margin + Petrol Station Dealers’ Margin ) – Subsidy

The calculation could be translated into:

RON95 Petrol Price = Cost of Product (MOPS) + ( RM 0.05 + RM 0.0954 + RM 0.05 + RM 0.1219 ) – Subsidy

and further simplified as:

RON95 Petrol Price = Cost of Product (MOPS) + ( RM 0.3173 ) – Subsidy

Cost of Product – Means of Platts Singapore (MOPS)

Means of Platts Singapore (MOPS) is listed in USD per barrel, thus the following formula is needed to convert USD per barrel to RM per litre.

  • 1 barrel = 158.9873 litres
  • 1 USD = RM 4.08 (22nd December 2017)

Thus, the cost of product (MOPS) in Ringgit Malaysia:

RM / litre = {( RM4.08 / 1 USD ) * ( 1 barrel / 158.9873 litres )} * ( USD / barrel )

and could be simplified into:

RM / litre = ( 0.02566242712 ) * ( USD / barrel )

Where to find Cost of Product (MOPS)?

You can check the updated price for MOPS HERE.

MOP-singapore-screeshot

Screenshot: CME Group.com on 22 December 2017

Petrol Calculator Malaysia

Looking for a calculator to estimate your petrol spending for the week? Here is a Malaysia fuel price calculator to help you:

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