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Malaysia to end petrol and diesel subsidies

therock

By therock,
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therock

therock

Supersonic

https://www.bbc.com/news/business-30140728

 

Is this the end of jaunts into Malaysia?

 

 

Malaysia plans to end decades-old petrol and diesel subsidies from next month in an attempt to save billions of dollars and reduce its fiscal deficit.

The government said prices of a popular grade of petrol and diesel would be fixed according to a "managed float".

This means they will move in tandem with global oil prices, which have lost more than 30% of their value in the past six months.

The Malaysian ringgit rose 0.3% against the US dollar on the news.

"If the market price of crude oil increases, the retail price of RON 95 [petrol] and diesel will also increase. And vice versa," Malaysia's Ministry of Domestic Trade, Co-operatives and Consumerism said in a statement.

"The move proves that the government is committed to ensure Malaysian citizens enjoy the most from the softening oil prices in the world".

Earlier this week, neighbouring Indonesia increased fuel prices by more than 30% after cutting subsidies in an attempt to save more than $8bn next year.

Malaysia, Southeast Asia's third-largest economy, increased fuel prices last October but still plans to spend more than $6bn this year on fuel subsidies.

Prime Minister Najib Razak is looking to narrow the country's fiscal deficit to 3.5% of gross domestic product this year and balance the books by 2020.

He plans to do this through a combination of higher taxes and reduced government spending.

Analysis: Jennifer Pak, BBC News, Kuala Lumpur

The Malaysian government says it spends more than half a billion dollars per month to keep the price of fuel artificially low.

Even foreigners such as myself are able to enjoy these subsidies.

However, Prime Minister Najib Razak has said this kind of spending is not sustainable and prevents him from investing in higher paying jobs.

He has gradually cut back on subsidies in recent years. But his popularity in the polls have also dropped and frustrated Malaysians have staged small street protests.

Some say the government should cut back on wasteful spending and curb corruption, which are frequently reported in the local press, before abolishing subsidies.

Officials say they are looking at ways to target subsidies to those most in need.

So even though it will not foot the bill for petrol and diesel anymore, the government will still subsidise food staples, cooking gas and electricity.

 

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carloverguy2017

carloverguy2017

5th Gear

Why are people intentionally driving into JB to fill up ?

Risking a broken rear suspension due to bumper squating and scrapping that undercarriage every time it goes pass the big metal hump at the custom ?

 

Robberies.

Thefts.

Jams.

Accidents.

Pot holes.

Bribing polis man

Delays and long queues.

Money changing and the 1 ringgit quarrels with the money changers.

3/4 tanks and risk of cheating and summons.

 

My SPC is 200 metres away. 

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inlinesix

inlinesix

Supersonic

Why are people intentionally driving into JB to fill up ?

Risking a broken rear suspension due to bumper squating and scrapping that undercarriage every time it goes pass the big metal hump at the custom ?

 

Robberies.

Thefts.

Jams.

Accidents.

Pot holes.

Bribing polis man

Delays and long queues.

Money changing and the 1 ringgit quarrels with the money changers.

3/4 tanks and risk of cheating and summons.

 

My SPC is 200 metres away. 

 

I just drove in last wednesday.  Save $19 after deduction road charge.

 

Still enough to eat supper.

 

RON100 ftw.

 

By the way, it is stupid to bribe POLISH man.

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Kangadrool

Kangadrool

Supersonic

Not subsidized, but not heavily profited too unlike SG!

:D

 

When crude is cheap, they say crude price is not a major factor. When crude price up, they up the pump price.

 

And we have major refineries here with easy passage for VLCC and ULCC to bring the crude here.

 

And today, the charter hire for VLCC is rock bottom.  :D 

 

i thought ron97 is not subsidised. Only 95 is.

 

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Fastfive1

Fastfive1

5th Gear

Why are people intentionally driving into JB to fill up ?

Risking a broken rear suspension due to bumper squating and scrapping that undercarriage every time it goes pass the big metal hump at the custom ?

 

Robberies.

Thefts.

Jams.

Accidents.

Pot holes.

Bribing polis man

Delays and long queues.

Money changing and the 1 ringgit quarrels with the money changers.

3/4 tanks and risk of cheating and summons.

 

My SPC is 200 metres away. 

 

People are cheapskate la. When you can get cheaper things across the border why not? Petrol is much cheaper over there. Dude you really think people drive in with 3/4 tank meh? Sometimes people value money more than time. So that's why they don't mind wasting time there buying cheaper stuff. Think of it, if people only earn 3k a month, that's about 150 per day assuming a 5 day work week. If they can save 50 bucks on petrol and some other spending. they save 1/3 of their daily pay. Why not? If these people go JB and pump petrol, what makes you think they care about the upkeep of their car. But this is their choice. A lot of PHVs go in there for cheap petrol as well. How much they make is determined by the distance they can clock. So they have to save money that way. It is just the way of life here. If gas prices here were the same as malaysia, do you think people will bother going over? Probably not.

 

Why do you think all the food places at the JB side are over priced? Why do you think car workshops there have good biz even though their price is only slightly cheaper than singapore? These places cater to singaporeans. 

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Wt_know

Wt_know

Supersonic
(edited)

splate car go msia

no ron100 no talk

not that ron100 can fly

but can afford ron100 is priceless .... lol

Edited by Wt_know
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Vratenza

Vratenza

Supersonic
(edited)

Hmm. . . Why people when over here say 95RON is enough... 98RON is waste of money, car cannot make use of anything more than 95RON, overkill...... 

 

 

 

 

 

 

 

When go over JB..... No 100RON no talk? 

 

 

 

 

It's all about affordability. 

 

:D

Edited by Vratenza
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Wt_know

Wt_know

Supersonic
(edited)

Hmm. . . Why people when over here say 95RON is enough... 98RON is waste of money, car cannot make use of anything more than 95RON, overkill......

 

 

 

 

 

 

 

When go over JB..... No 100RON no talk?

 

 

 

 

It's all about affordability.

 

:D

i also say Ferrari is overkill and useless in spore

max speed 90kmph nia .. [lipsrsealed]

step accelerator reach traffic light liao ... what’s for

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Buadongdong

Buadongdong

Twincharged

Hmm. . . Why people when over here say 95RON is enough... 98RON is waste of money, car cannot make use of anything more than 95RON, overkill...... 

 

 

 

 

 

 

 

When go over JB..... No 100RON no talk? 

 

 

 

 

It's all about affordability. 

 

:D

If can pump 95, I would do it.. Now is bo bian suck thumb have to pump 97.. haiz... :slow:  :that-dood-is-up-to-something:

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Beehive3783

Beehive3783

Turbocharged

PAPa takes maximum profit from this.

 

Earn from land parcel lease tender

Earn from petrol tax

Earn from GST

 

Who's the real winner? It ain't the petrol cartels for sure!

 

Not subsidized, but not heavily profited too unlike SG!

:D

 

When crude is cheap, they say crude price is not a major factor. When crude price up, they up the pump price.

 

And we have major refineries here with easy passage for VLCC and ULCC to bring the crude here.

 

And today, the charter hire for VLCC is rock bottom.  :D

 

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Lala81

Lala81

Hypersonic

Hmm. . . Why people when over here say 95RON is enough... 98RON is waste of money, car cannot make use of anything more than 95RON, overkill...... 

 

 

 

 

 

 

 

When go over JB..... No 100RON no talk? 

 

 

 

 

It's all about affordability. 

 

:D

 

If i could pump 95 over there, i would actually. for old NA engine like mine, pump 97 quite wasted lol.

 

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Cheefarn

Cheefarn

5th Gear

splate car go msia

no ron100 no talk

not that ron100 can fly

but can afford ron100 is priceless .... lol

Name one b n b car engine that requires 100 octane to work? Even the most super of all super cars can work on 95 octane

 

FYI, in Thailand and Indonesia, their max octane rating at the pumps is at 95 only, and for Thailand, they got E10 and now E85... meaning the fuel has 85% mix of Ethanol to keep the fuel cost down and to allow cleaner combustion chambers. 

 

These countries have super cars too. I wonder why they can run on 95 octane and/or E85 without their engines blowing up?

 

No wonder bolehland people laughed at sinkies... loaded but stupid... Willing to pay more for fuel that their simple engines can't take adv of. 

 

We buy their 97 octane fuel only becos of Euro 4 specs... which is not that ideal for our new Euro 6 compliant cars. But alot safer than their Euro 2 95 octane. 

 

Therefore, just choose their 97 octane will do la

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