Tuesday, December 9, 2008

Cabinet to discuss on reduction of oil price.

My reliable source just told me that the cabinet will discuss further price reduction of petrol in its weekly meeeting tomorrow (wednesday).In my last posting it was determine that the price of petrol should be RM 1.00 with subsidy.If the govt cares for the rakyat,it should reduce pump price of petrol to RM 1.00 IMMEDIATELY. I challenge the govt to reduce the petrol price to ONE RINGGIT as the RAKYAT deserve to enjoy cheap petrol price as Malaysia is a NET EXPORTER of oil with a surplus of 55000 barrels of oil per day.

Monday, December 8, 2008

Price of petrol should be RM1 with subsidy and RM1.30 without subsidy

1 Barrel of oil = 152 liters of oil.
Therefore, price per liter of oil is 41 divided by 152 = US$0.269 = US$0.27
Conversion to RM at US$1 = RM3.60,per liter of petrol is 0.27 x 3.6 = RM 0.972.
Cost of refinery and transportation per liter is RM0.32sen.Subsidy is 30sen.

Therefore,price of petrol per liter WITH SUBSIDY is
RM 0.972 + 0.32 - 0.30 = RM 0.992 = RM 1.00.

But price of petrol WITHOUT SUBSIDY is RM 0.972 + 0.32 = RM 1.292 = RM 1.30.
The above calculation prove that the govt is making money from the petrol price and it is advisable for the govt to reduce the price of petrol in order to reduce the burden of the RAKYAT.