Tuesday, December 9, 2008
Monday, December 8, 2008
Price Per Barrel = US$ 41 (CLOSING PRICE IN AMERICAN MARKET).
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.