Malaysian petrol prices could go up by 15 cents if government approves proposal

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keshy

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keshy

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According to a report on Malaysiakini, the Malaysian government could hike petrol prices up by this year. The report says that the initial price increase will be 15 cents per liter and implemented this year under plans presented by a body advising the government on how to cut subsidies.

The proposal was made today to urge people to accept higher prices as Malaysia seeks to reduce its budget deficit which stood at a 20-year high of 7 percent of gross domestic product in 2009.

If the proposal goes through, the price of petrol would be hiked some time this year followed by two price hikes totally 20 cents per liter in 2011 and two more of 20 cents per liter in 2012.

In 2013-2015, there will be slow price hikes and by the end of 2015, the price of RON95 would stand at RM2.60 per liter, but the proposal has yet to be approved by the government, so there's no telling whether or not the proposal will be accepted.

The forecasts were based on a crude oil price forecast of US$73.06 per barrel for 2011 and US$79.41-US$94.52 for 2013-2015.

Petrol

Petrol prices to be increased 15 sen in June-Dec 2010, then 10 sen hikes every six months between Jan 2011-Dec 2012 and by a lesser amount in following years.

Petrol prices seen at

2011 - RM2.16
2012 - RM2.20
2013 - RM2.34
2014 - RM2.52
2015 - RM2.60

The forecast for crude oil in 2011 is US$73.06 per barrel and for 2013-2015 in the region of US$79.41-94.52.

Tolls

Renegotiation with PLUS highways in 2010 and with LDP Highways by 2013.

Propose that all concession agreements would proceed without subsidies, resulting in a toll hike of between 10-67 percent for 2010.

Gas

Gas price is increased by a fixed rate of RM3/MMBTU every six months from initial increase for power sector and non-power
sector.

Gas price increase of RM3/MMBTU every six months corresponds to an increase in electricity tariff of 1.6 sen/kWh every six months.

Electricity tariff for lifeline consumers (in 2010, less than 200 kWh) would not be increased. About 56 percent of households will not be affected in 2010.

Consumers with a monthly bill of 20 ringgit and below will continue to get free electricity until Dec 2010.

Strategic industries will be protected initially.

Inflationary impact

* Estimated impact on inflation:

- A 5 percent increase in petrol prices would result in a 0.4 percentaage points rise in the consumer price index.

- A 10 percent increase would cause the CPI to go up by 0.82 percentage points. Fuel represents 7.7 percent of the CPI basket.

Total savings

* In 2010, government will save about RM3 billion. In 2011, RM14 billion, RM21 billion in 2012, RM29.5 billion in 2013 and RM35 billion in 2014.

Source: Reuters via Malaysiakini
 

joelabulabi

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joelabulabi

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stupid malaysians giving our subsidies petrol,sugar and rice to the thai's....now were subsidising thai's and malaysians...and not to forget kiasu singapore...later all malaysians will have to pay the price cos a few stupid malaysians got greedy..selling subsidies stuff to them
 

alantan

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alantan

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the analisis and the proposal above makes no sense..it looks like as it was from a college students only. Its not convincing that by reducing the subsidy it will solve problems ahead.

Politician will continue to use the money saved building another cyberjaya or buying the PM another trip to meet with the president of US

good luck
 

8voltpreout

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8voltpreout

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is this how a government should be managing 01 country? Price hikes in everywhere! This and that and that.... Bla bla bla.... I wonder what is the Terengganu Oil and Gas Plant is for... Every year also said the same thing as Petrol prices hikes when our country itself has a oil and gas plant!!! Why always said that US $$ per barrel?? Does somewhere in U.A.E was affected with this?? What is the wrong with you government guys??
 

arturo

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arturo

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fuel subsidies decreasing but car ownership taxes not decreasing...no quod pro quo status at all. wonderful!

next year GST also will most prolly be implemented. now we need to ubah gaya hidup once again. wonderful!

government gets savings but then splurges on bUy-elections to win votes. wonderful!

:thefinger:
 

zenom

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zenom

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if government stop subsidies their own staff over everything including sabun mandi , yes , sabun mandi . my uncle is a government worker and the government give him a nice '10 E60 beamer , RM12k p/m house , free petrol , free hphne , free maids , everything is free . he goes on vacation for 2-3 days at 5 star resort just to attend a 1 hour 'ceramah' . his wife ? even buy a baju kurung also free . just imagine if there is 1000 gverment staff like this ? well there is actually , no doubt. dont mad at us if more of us malaysians become a robber la after this .
 

lewis26

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lewis26

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increase in petrol = increase in everything else..
whatever also will use the excuse as cost for transportation of the goods increase...
inflation shoot up.. living expenses shoot up..
another " GOOD " plan from some "expert"
 

arturo

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yah yah everything go up...but gaji no go up


i dun mind subsidies being reduced or totally thrown out the window...but gomen must find a way to do a something for something deal.

want to reduce fuel subsidies? then increase public transport coverage and effectiveness then. the rakyat wont feel the pinch and even if all other essential goods increase price due to an increase in fuel prices, cheap, efficient public transportation costs will most certainly offset the increase in expenditure. very simple example. i work in Johor n i know for a fact...no car in Johor....dun even think of going out. the public transport here is so screwed up. most housing estates are so far away from the industrial/business districts. even if public transport exists, it is sparse and long in between. taxi? only if you want to get throat slashed

If not, promote alternative fuel by giving incentives for green cars. we are an oil palm producing country. i know we have started in some minor research into bio-fuel...but look at the automotive market...any cheap diesel passenger cars out there that the average joe can buy and replace their ageing rustbuckets? NO. ford focus TTDI? who can afford? those who can afford wont bother how much fuel costs. NGV. perfect fuel for us but i dont understand why the coverage of CNG stations as sparse as gold in Klang river...another example of gomen trying to show us they're doing something but oni just so...half past six attempt. if the coverage of CNG stations more, i definitely will convert a kancil or viva into an NGV. why not? save $$$ and saving mother earth. ask u all something...if CNG costs rm1/L n anywhere can pump...wont u guys convert? yaya...i know power a lot less...but leave the monster for weekends mah...more money saved from weekdays = bigger monster to play around with during weekends :biggrin::biggrin::biggrin:

haih...never ending debate la. talk too much wait kena ISA so better keep my peace n complain in silence.
 

kelv!n

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kelv!n

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is this how a government should be managing 01 country? Price hikes in everywhere! This and that and that.... Bla bla bla.... I wonder what is the Terengganu Oil and Gas Plant is for... Every year also said the same thing as Petrol prices hikes when our country itself has a oil and gas plant!!! Why always said that US $$ per barrel?? Does somewhere in U.A.E was affected with this?? What is the wrong with you government guys??
well generally speaking most of the trading around this world is done using USD that is the reason why the crude oil per barrel price is using USD and reason why the petrol price hikes even though our country has oil and gas plant is that those being dig up in our country wont be sufficient to support for the amount of cars in our country and if im not mistaken my lecturer did mention before the oil dug up in malaysia is not suitable to use as petrol for cars even after being processing and is only suitable as petrol for aircraft.

and another reason why the crude oil price hike is that the war in Iraq and Afghan goes on, the price of the crude oil will increase as the military is consuming a lot of petrol to power up their stuff and also recently there is a cargo ship full with crude oil that have an accident and sink already which results of increase the recent crude oil prices.

anyway all this is just my 2 cent. in order to control the crude oil price hike, the united states have to do something with their own people and their own government as they are the number one country in the world in consuming the most oil and gas per year.
 

arturo

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arturo

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well generally speaking most of the trading around this world is done using USD that is the reason why the crude oil per barrel price is using USD and reason why the petrol price hikes even though our country has oil and gas plant is that those being dig up in our country wont be sufficient to support for the amount of cars in our country and if im not mistaken my lecturer did mention before the oil dug up in malaysia is not suitable to use as petrol for cars even after being processing and is only suitable as petrol for aircraft.

and another reason why the crude oil price hike is that the war in Iraq and Afghan goes on, the price of the crude oil will increase as the military is consuming a lot of petrol to power up their stuff and also recently there is a cargo ship full with crude oil that have an accident and sink already which results of increase the recent crude oil prices.

anyway all this is just my 2 cent. in order to control the crude oil price hike, the united states have to do something with their own people and their own government as they are the number one country in the world in consuming the most oil and gas per year.

a little different from my understanding. our crude oil has very low sulfur composition which makes it high grade. not sure about it not being suitable for being used in the automotive industries but what i know is the fuel we use(diesel n gasoline) are low grade fuel. when they say low grade fuel, they mean the sulfur composition is high. thats y merc n BMW were very reluctant on bringing in their range of diesel for fear of warranty issues due to early engine damage from low grade fuels.

think of the economics...we sell hi grade fuel..n buy in low grade fuel. even if our consumption is more than our output, we should make enough profit from our hi grade oil to cover the variance.(just agak agak cos i dont know our yearly output/consumption)
 

hafidz_moro

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hafidz_moro

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i guess..most of the comments above came from person who already have a high degree of 'FEED ME SUBSIDIES ON MY PETROL & FOOD SYNDROME'...haha :p

Come on laa wey, dont start blaming others & government! get calculator..tighten your belts..not just Malaysia la guys! everywhere and any country now have money and cents issues and problems..Live with it!! its how you manage your spending..blame government servants for getting baju kurung laa, car laa..watso ever also no point! anywhere in the world, the best company is the government! they always have the best benefits..thats why more and more professionals quit private sector and move to join government servants...

be mature and accept the REAL and SUPER REAL facts!
The world is going GREEN and the world is going to be more CAPITALIST!
more & more Europeans countries getting bankrupt soon...the other nations just counting months and years for their turn.. its a cycle of economy for every 100 years (10x of economy downturn for every 10 years)..plan your spending and debts..blame yourself for whatever things you have spend and whatever debts you have to pay for it after that! haha

P/s: this report is too childish and don't even have proper figure for expectations and too misleading..maklumlaa, malaysiakini.com maaa..paiseh
 

jpoplover

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jpoplover

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"tighten your belts"... ... for how many years ?????

tax increase .. cut subsidy .......
where all money go??? election ? for those jumping frog ? duit pocket ?
or more spend to improve our road condition ? economy ????
 

derekyhp

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derekyhp

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ya, where does all the money goes?? vacation? bigger mansion? duit pocket? decrease tax la!! Malaysian average wedge earner is considering not earning a lot, still want to increase petrol price? what is the government giving back to us?
 

intrigue

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intrigue

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how is reducing the subsidise of fuel and etc going to solve the main issue?

The problem lies with mis-management by the Government and it is the management to be change and not the people around Malaysia to change the lifestyle (the salary hike of private sector doesn't tally with the uprising cost of everything) in order to fit into this society that is caused by corrupted < you know who >


Tax increase, subsidise decrease (prices of materials increase thus lead to a domino effect), salary is not adjusted because the company is not making money, blah blah blah...

Whose fault? The G says is NOT ME! We are just beginner in this ECONOMIC thingy and just starting the race!
 
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weikeat90

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weikeat90

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they may save RM 35bil.. but i could assume tat two third of it will find their ways into some1's pocket. in the end: the poor get poorer and the rich become richer.
 

davidyapdls

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Guys.....my opinion is we got a poor leader and to what i see is our Malaysian Gov is taking too much money as in like everything is free for them and we have to pay for them.....WTH!!!! when petrol price go up everything else will follow and i bet with you that time there will be million of people complained......As far as concern our daily food is travel by transport and this petrol price go up so will their cost for deliver it to us...To me i see the is a lot of ways to cut down and is thru the GOV SECTOR......as for us normal people we have to buy everything and there is no such thing as FREE!!!!!.As times goes by our country is getting from good to worst and my opinion is poor leadership.....if the leader is strong then they will know what to do instead asking us how to cut down....Crime will increase as lots of people is trying to meet end then what are they going to do???? Same old same old....Sorry Guys if offended all of u all......just voicing it out...:trytofly:
 

jeffbboyz

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jeffbboyz

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malaysia will go bankrup at year 2019 ?? for God sake...we are producer of natural resources and many more...if those bastards stop eating our money and we all can live happily.....
 

wing

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wing

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No qualms with removing the subsidies. Higher petrol=reduced traffic=more frequent public transport (I hope). At least we're not subsiding it for foreigners and the rich as well.

But like what weikeat90 mentioned, I hope the saved monies are put to good use and not a means to increase someones' pocket.