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The Reason For High Petrol Prices

22fuelm_m

Ever wondered why petrol prices fluctuate? And how is it that when we have more oil reserve than we need, prices are still on the rise? Could it be that individuals heavily invested in the oil industry are pumping more money into the industry to further increase the price of oil? It is believed that the price of oil will soon hit US$200/barrel, it’s floating around US$130 now, should we panic?

I came across this interesting article while browsing Carscoop earlier and found it to be enlightening. What really concerns me now is, how long are we pampered Malaysians going to live on subsidies? From what I gather, our comfort is about to be history. Read the article here.

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    limfk7
  • May 29, 2008
ya right price is crude oil is floating like hell for malaysia is good for subsidy, but remember malaysia car price tax will be feed us more 10 year petrol we use daily
example :

toyota vios 85000, with out tax 54000 surplus Rm31000

imagine how long u pay for petrol will up to rm 31000. you do the math.

government can rise petrol price if reduce the tax on car.
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  • A
  • May 29, 2008
dude, road tax and duty are not only meant for petrol subsidy... the road itself (no matter how bad also), traffic lights, pavement, carparks, signages etc are all costs too.. federal highway, coastal roads, ring roads are all FOC bro... where does the money come from? u do the maths..

not saying the government are absolutely correct.. of course they need to improve too.. but as u and i know, as singaporeans and thais too, our petrol is DARN cheap!! imagine if we all have to travel 50-75km just to fill up petrol.. lucky to be malaysian.. :D
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    drMpower
  • May 29, 2008
some people dont get it, do they?

and then some groups of people come and preach about they can lower petrol prices down by taking someone's money, so these people totally believe and fallen for that empty promise(s)

the fact that matter is, the government does not have anysort of power to control world's crude oil price. blame the manipulators. they are the ones making stuff up and raking millions only with speculations.

enough of this stupid perception of government to bla bla bla on petrol price. get a life, will ya?

going back to the article. actually it is a good one. the world do have enough numbers of barrel and the reserves are quite sufficient to get us thorough atleast couple decades. but having say that, the writer ask the million dollar question - why prices are still climbing up?

like i said, someone is making big money by making stuffs up. they create panic situation for everyone and suddenly prices gone up like hell. OPEC has been churning more than enough barrels to cover the shortages, i.e during katrina etc etc. these manipulators use their bloody mouth to purposely jack up the prices, and raking millions while they are away playing golf.

So, with panic situations like we are now, everybody is very concern about reserves to be limited and gone, and everywhere we see campaigns to save energy, recycle stuffs, etc. etc. Which are good if u ask me. but the way it gets there is all wrong. all based on bad manipulations and bad maths.
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    erm
  • May 29, 2008
when comodities being manipulated...they can be play around by speculator...like our currency in 1997...it could go up or down....same gonna be for our palm oil and rubber
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    bimasakti
  • May 29, 2008
adam,
what is meant by limfk7 is not about road tax.. yes, road tax is relatively cheap and i think not much people cares bout it. but, this is about excise duty implemented to recond, cbu and ckd cars in order to protect our national car.

anyway until today, we malaysian are still lucky enuf can buy subsidized petrol.. like i said, until "today". we donno whats the situation tomorrow.
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  • May 29, 2008
yeah, i know..

and no, to me roadtax are not cheap either.. maybe due to bigger cc engine.. does that mean i own more of the road? i still occupy the same space on the road regardless of the cc size.. or does that mean those who pay more roadtax are subsidizing the ones paying merely rm80 per annum on road tax? just to let u know, there are people paying rm15,000 on roadtax.. do these people get the right of way? do they get to use 'special' lanes? do they get to wear fancy no plates? tinted glass? speed recklessly? hehhe..

On import duty, it's worse! shudn't all luxury cars or 3 ltr and above not have duty? since no national car is in that range..i think u were referring to vios, city, camry, civic, evos, subis, all WITHIN the range.. what about lambos, ferraris, amgs, m-series, etc? surely they are not within the proton, perodua and naza range, are they? so, shud they get taxed, to PROTECT our national cars.. to me, these are the people that are subsidizing the most to the nation.. i'm sure the riches shud be complaining more.. to 'pay' more than anyone else, yet getting sub-standard facilities, treatment, etc..

sigh.. i care, i'm sure they care, i'm definitely sure u care! sorry guys for the rants (and i've not even started!! keke).. just the time of the day.. :p
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    rossifumie
  • May 29, 2008
opssss..its getting more serious here....

guys,yup ,petrol price are raising crazyly but do u all think ppl out there will stop using it even its goes really mad?

is there NO any other source then petrol out there? YES there are but it is giving out same energy as petrol?

TIME is getting narrow to driver out there...we are stuck between PRICE OF FUEL , OUR DREAM MACHINE and FREEDOM OF RIDE...

something that we need to admit,most of our dream machine are made to speed n its produce high hp and consume high fuel amount...so in a way its mean we need to spent double to drive it out n get our SOUL HAPPY...

what the HELL goin to happen .....

car maker suppose to do something on this....

its sounds like,getting to be as other country,that ONLY RICH ppl can own car n afford to use it coz all middle class ppl n moderate can afford to do that..they can buy but cant drive....

really hoped our goverment can FIGURE out a super good solution for this issue..

n make a win win outcome for all ...

chEers
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    wongth7
  • May 29, 2008
<em>Admin: Removed due to unnecessary comments</em>
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    sllsll
  • May 29, 2008
I don't agree that the fuel subsidy should be removed until a new and clean government is formed.
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    drMpower
  • May 29, 2008
some people never learn, is it? they buy one magazine see one car inside magazine...then go ...wwwwaaaaahhhhhhhhh...got turbo inside. phiiissshh. pshiiishhh...20 inchers. got LCD summore. WOW!! very impressive...and also that use by hand gear ..what call that? haaa pedal shifter...wow..

they like it so much. time to call papa and check can buy o not. if papa dont buy, they'll rob bank. dont care. how can to board bus one loo..no phishhhss..hahahahha

hahahahahahahahaaaha..
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    rusifiz
  • May 30, 2008
hmm.. as I read in the paper, one of the reason why the price is raising(in USD) is because of USD value itself. USD value keep on declining and the producer of the price from other country will definitely want their oil to be sold in their own currency, hence the price rise.
it should only rise, but we are facing with price hike. extreme rise of oil price. the reason for that I can only blame to those bloody greedy MFs around the world and mainly in the US.

with the price hike, oil and gas companies are getting more and more profits. their cost to produce the oil is the same but the price of what they are selling is getting more and more. I would blame the bigshots and shareholders of these companies for the hike. their bottom employees are still getting the same amount of salary no matter how much the company profits.

subsidy?
the price of oil in one of the south american countries is only 0.06cent (USD)
how is that so. they are one of the producer of oil, instead of selling the world price to their own people, they sell it at the cost price for drilling the oil out and filtering it.
the excess of these oil are then sold through exports to other countries. the

is that possible in our country? as far as I'm concerned, yes it is indeed.
even if the price of oil reaches 500USD per barrel, we can just drill our own oil and sell it to our citizens. just charge for the cost of drilling, filtering and distributing (include all the labor cost of course)

and the price stated there is the price of crude oil per barrel. crude oil are processed to produce quite a number of other products such as gas, petrol, diesel bitumen and others.

but of course, this is just my opinion. a lot will shoot me for my points but that is the way i see things.

thanks.
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    keshy
  • May 30, 2008
its all down to greed.. there's nothing else to it.. agree or not it doesnt matter..

just to prove it.. i challenge the EU to take up the French Presidents suggestion that all EU members drop petrol taxes to help their people.. Once they are done with that.. The rest of the world can use that as a precedent for their own tax schemes..

Do I believe such a thing will happen ??

NEVER !!!
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    limfk7
  • May 30, 2008
ya the, road tax and duty are not only meant for petrol subsidy, where the money come from? it is our income tax and others cost and where money car tax in to government fund to distributed their money to control other cost incur by government traffic light road condition and etc . by the way FOC haha where you income tax go. Are u study any of Marco economic
REPLY ON
dude, road tax and duty are not only meant for petrol subsidy… the road itself (no matter how bad also), traffic lights, pavement, carparks, signages etc are all costs too.. federal highway, coastal roads, ring roads are all FOC bro… where does the money come from? u do the maths..

not saying the government are absolutely correct.. of course they need to improve too.. but as u and i know, as singaporeans and thais too, our petrol is DARN cheap!! imagine if we all have to travel 50-75km just to fill up petrol.. lucky to be malaysian.. :D
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    Jack
  • Jun 1, 2008
For my opinion, the price of petrol will gone up from 30USD at 7 years ago till now 130USD is because those giant investor. It is unbelivable that in not even 10 years time will increase nearly 300%, although petrol will exhausted but the price should be increase step by step not shoot up.

Those giant investor who invest plenty in the world index of petrol, buy the index will increase. Therefore, the price will increase like crazy n remain.... Same as when they focus their investment in gold index, the gold price will increase too.

Besides, in order to change the current market trend, our government should really focus to plan n provide a well organised n effective public transports system or develop palm oil to replace petrol.

It is for long term plan, because once our country become the fully import country on petrol, the price of petrol will very very scary and it is not affordable. The day is not far away already, it is because it is expected after 35 years ours petrol will exhautsed.
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    wans
  • Jun 3, 2008
the modern world is burning ...do u want to let it burn ?
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  • Jun 3, 2008
U guys shud look up for a movie/documentary produced by leonardo dicaprio, called the ''11th hour'' out on dvds.. tells you how bad the world is now with regards to fossil fuel issues...

good watch with interviews and facts from credible spokespersons..
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    wira putih
  • Jun 5, 2008
These another thing I want to talk about. subsidy?...... for your guys outhere, actually there is no such things as the goverment paying subsidies... but in fact, petronas are paying royalty to the goverment. For last year, petronas earn 80bil but actually, they earn more 150bil. the rest paying the goverment royalty. You guys want to know one thing, when ever price of fuel in malaysia rise, the bonus for each staff for petronas get higher and higher.. my fren work there, he said last year, petronas staff gets 5 to 6 month bonus. that only for the lower grade, but for the manager grade, up to 20 month. But of course, thats their luck.

Adding more, our nation is oil exporter country, why we compare the price of fuel with singapore or thailand, these country aren't oil exporter. Try comparing with indonesia, Sudan, nigeria, or myanmar. The gov try to blur people eyes with ensentif, RM625 per year, about RM52 per month.. are you kidding. RM52 just enough only 19 liters. how far u can go with 19 liter per month. Currently I'm driving to work n back around 80km/day. around $30/day including jem, n almost $900/month. after fuel rise, from my calculation, it will be RM43/day n $1290/month. 1/3 of my salary.. So what are we going to eat, pay our bills, children...

The conclusion is, the gov is not at the best judgement to sort this matter. When Dr. M was PM, the price rise only from 70cents to $1.20 for 17 years.. So just tell us the truth, gov, why you want so much money from your people. We are suffering, but u up there are fiiling your banks in millions... just my 2 cents.
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    Jaz
  • Jun 5, 2008
With the Petrol price goes Up ... Food Cost will goes up ... Many other expenses will goes up ... most important one is Crime Rate will goes up ...

More ppl will commit crime in order to survive ...

We can see how drug addict rob ppl to feed they addictive habit ... then when the ppl have no enough money to feed themself &amp; the family this will lead them to commit crime in order to survive ...

another bad scenario is that many professional will seek oversea jobs ... how to survive with peanut salary and cost of living is high ... Local investor will seek better investment opportunities oversea ... Is this what our so-called government want ...
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    deacon
  • Jun 5, 2008
Malaysia is a playground for the few. They twist turn facts and figures, tell you to accept it.

Malaysians you have 5 years to rid this nation of its leaders!
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    Marah_BN
  • Jun 7, 2008
hello everyone in Malaysia. wake up!! wake up!! it is time to change government. This BN party is clearly not capable in championing malaysians. Now with the price of fuel increase, inflation already start kickin in and to curb this, Bank Negara has to increase interest rates and thus higher BLR!! good luck to those who bought houses using the floating system (like me)-Oh God. Plus, i can bet this.. Malaysia is going nowhere but downhill. The government mentioned that subsidy cant be continued coz not much budget. why? you see la= stupid astronauts programme + lame tamadun islam and masjid kristal trganu+ stupid corridors (even MSC is not doing as expected). come on. dont waste our rakyat money!! why waste on stupid projects. I can tell you this. Since the government is so incompetent, depending too much on Petronas money, by the year 2015, our oil reserves are expected to be zero, Malaysia would becoming like Zimbabwe coz government wont have much income. Please put somebody with brains in the government or else, there wouldnt be any difference between Malaysia and Zimbabwe
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    MR K
  • Aug 8, 2008
malaysia gov make our life like hell man.. petrol price raise is not the only thing we should fear is the inflation effect on other goods...and yet,our paid never add.. if the malaysia gov can use, shit also can eat already..use 600 to cheat we , the people..they give you a sugar and want you to pay back a sugar cane farm!!!!don't be childish...gov are all useless, they live in the heaven and we people in the hell , they have money from all the "rasuah" and we people all waiting to be dead in here our lovely country!!!
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    DareDan
  • May 31, 2010
the best thing is dont vote...
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    VD
  • May 31, 2010
I would agree on this move ONLY IF the Government decides to abolish excise duties on cars, abolish road tax, abolish GST, and abolish tolls for highways etc.

The reason for subsidy is to help improve the lives of the people.
By removing subsidy, something must be given in return to the people.
As far as I know, I see nothing in bargain that benefits the people at large.

*sigh*

I guess those at the helm of the Government are either stupid (unlikely, since everyone has at least a Degree) or evil.
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