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Yow Chuan

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Petrol Down to RM1.90

Posted on December 2nd, 2008 in Daily Observations, Malaysia Personal Finance |

(The Malaysian Insider) Pump prices of petrol and diesel will drop by 10 sen starting tomorrow.

RON97 petrol will now retail at RM1.90 per litre, while RON92 and diesel will be at RM1.80.

This is the lowest price in years since RON97 was pushed to RM2.70 per litre in June from RM1.92.

This was announced in a statement by Prime Minister Datuk Seri Abdullah Badawi this evening and is due to the drop in global crude oil prices.

“The government has decided to speed up the reduction in retail prices to allow the public to enjoy the savings,” the statement said.

When the black gold peaked to USD120 (RM420, assuming exchange rate at 3.50) per barrel, Malaysians pumped their petrol at RM2.70 per litre. If there’s a mathematical relation with the world’s black gold price, here’s what we could have deduced from the prices above:

RM420 per barrel = RM2.70

Today, world’s black gold price hovers at around USD45 (RM157.50) per barrel. Using the relationship above, our pump price should be effectively RM1.0125.

Well, that is if THERE IS a relation at all. Maybe Malaysia’s petrol is mixed with palm oil.





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  • Black gold actually peaked at USD147 per barrel, 1 barrel is equivalent to 117 litre, hence it would've been RM4.4 per litre. Now, at USD50 (let's say), it should read as RM1.5 per litre. Whatever it is, we're overpaying for petrol.
  • if calculation is to be like that..then why should we pay more?
  • I think the pit fall of this calculation is that the older price was subsidized but now the price is not, so instead of RM 2.70, its actually RM 3.90 in the past etc. While RM 1.90 is about the right market flow price.

    we cann't keep on complaining about high oil price and then turn around keep on buying it. Petrol is limited resources, so the question is not how much to pay for it. The question is to use or not to use.
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