Malaysia's petrol prices 1990 - 2013, and the 20-sen issue

So, you've had enough of looking at the 20-sen figures written in bold letters on every tabloid the past two days? Not surprising. This is the single biggest jump in petrol price hike in as many years.

Malaysia's petrol prices have been trending up steadily for the last 20 years or so, except for a bit of hiccup (if you can call it that) in June 2008, whereby the government adjusted the petrol prices to RM2.62 (RON92) and RM2.70 (RON97), and started paying out subsidy of RM625 through Postal Order to the owners of smaller displacement cars.


Figure 1 - Source: Astro Awani


Compare our petrol price (Figure 2) with the rest of the world and suddenly you feel 'very lucky' to be paying so little for your petrol considering consumers in neighbouring Singapore, Thailand and Philippines are paying more than double that amount. You can compare more here: Petrol prices around the world.



Figure 2 - Source: Astro Awani


How do you explain it?

No matter how you justify it, people are bound to think you are collecting 20 sen from their pocket rather than buying your story of 'government is reducing the subsidy by 20 sen', and calling it Subsidy Rationalisation Exercise.

To me it's obvious: In order to fulfill the promised higher BR1M, you have to dig it from somewhere - if not from the existing budgeted expenses, it has to come from someone else's pocket.


What can the 20 sen do?

For a medium-sized sedan, say a Proton Saga 1.5 litre,  with petrol consumption of 50 litres/week, you are paying extra RM10 (0.20 x 50 litre) from your pocket every other week. You drive more, you pay more.

In a year, you pay RM520 (52 weeks x RM10) which is slightly more than the current BR1M amount. So, you are basically paying the BR1M yourself. Worst still, if you are earning RM3,001 a month, you are actually helping the government to pay of your colleague who is earning RM2,999.

Of course, I am edging towards the ledge in my shallow interpretation. But simple man like myself and the many others around me think somewhat the same thing.

So, yeah, your simple explanation in the mainstream media that the 20 sen will go towards taking care of the welfare of the people, and in particular BR1M, does not add up; at least not to me. Give me something harder to munch and I will think harder.

Yawn.....

Petrol prices around the World, and Malaysia - July 2013

Many of us have been complaining about the price of petrol in Malaysia and there are numerous calls for revamp of the fuel subsidy policy. We say that, as an oil producing nation, Malaysia should be at a position to offer its citizen a lower petrol prices, just like those in Arab countries.

I found this unleaded gasoline price comparison when I visited Cikgu Tehramuan's blog and decided to share it here for our reference.

Note about the source (MyTravelCost.com): The data are drawn from a variety of sources including official government materials, oil companies, online resources specializing in gas prices, and others.

Petrol prices in Malaysia, compared with other South East Asia nations and major economies:


Among South East Asian countries, Brunei is cheapest with Malaysia coming in second. It is most expensive to refill your tank if you are driving in Singapore.


Global comparison of unleaded petrol prices:

Figure 1 & 2: World's unleaded gasoline prices, July 2013

You pay almost none in Venezuela while it is hard to make ends meet for the the average drivers in Turkey. You can tailor this according to the currency of your country by visiting MyTravelCost.


The Green Mechanics 2 cents'

Even so, I think there are still a lot more to be desired in the fuel subsidy policy in Malaysia. One thing that is obvious is that, car prices are extremely high here. It is like you are paying an up-front amount of money to subsidise your fuel for the next 10 to 15 years.

I would rather have un-subsidised fuel, and I get to purchase my car at half the current price. That way, I would be the one managing the way I spend on gas, such as, how much I travel, when to drive and when to use the public transport, etc.

If I can buy a Toyota Altis or a Honda Accord or a Nissan Teana at less than half of the current price, then yeah, why not!


Source: MyTravelCost