A chart that surfaced online alleged that since the Malaysian government removed the subsidy for petrol, Malaysian are the ones ‘subsidising’ the government instead. True or not, up to you to decide.

Since December 2014, Malaysia has removed the fuel subsidy that Malaysians have been enjoying for decades, and in it’s place a ‘managed float system’ that updates the RON-95, RON-97 and diesel prices on a monthly basis.

As fuel prices have been on a downward trend for the past year, Malaysians have not felt the pinch, and have even enjoyed a period of low fuel prices earlier this year.

However, the article has alleged that the government has not been able to explain the formula behind the pricing system, or the mechanism that was used to determine oil prices; instead Malaysians are told that the prices are based on the performance of global oil prices from the previous month.



The article also took jabs at the Najib administration over his recent scandal, and complains that despite enjoying even lower oil prices, Malaysian are feeling the pinch as prices of everything else has since increased.

The chart above compared global crude oil prices with local petrol price set by the managed float system, and clearly shows a significant and growing gap between the two, Malaysian oil prices being higher that it should.

A quick search on the global oil price has revealed that the chart’s prices have been pretty accurate, and on the surface it seems that their allegation is right on spot.

However, one must not forget crude oil basically means unrefined petroleum, and is just part of the metric that determines consumer petrol prices. Cost of tax, refinement and more also had to be factored in before the final price is determined. An article from Telegraph has a very good explanation regarding this matter.

However it is also suspicious that the gap between crude oil and the final petroleum price to have such a big gap, but without a clear explanation of how the managed floating system arrive at the final price, we will not be able to know for sure.

http://thecoverage.my/opinion/chart-shows-...-paying-petrol/

does it change anything ?

Still on of the cheapest. So not complaining.

Malaysians pay highest for basic essentials wrt their income.
Guess why?

Msian gomen encourages MONOPOLY play. That's why!

Yg penting Malaysia masih aman

kita ikat perut makan maggi demi mempertahankan negara dari DAP.

You don't pump crude oil into your car ya

chart is formality only..actual is not like that...

Maggi mee kat Kayu RM 6.90.

Makan pasir jer sekarang.

Pasir pon mahal bang....kita makan plastik bungkus maggi je....

OKlah...since the rakyat is OK to donate Billions of dollars to personal accounts, why not they subsidize the gov well...

Good Rakyat

malaysians 90% are bodoh..so what u expect..hahaha

This is a known fact. Since start until now its always been this way.

This post has been edited by chtan: Apr 19 2016, 08:58 AM

- Ringgit weakness
- Government has said they pay no subsidy now.
- To me, people who refine and transport oil are good people who are non-for-profit. we should NOT blame them, as they dont have any profit. we should blame the government

plus the 10% who are pandai either crony or earn 10k above per month...couldnt give a fuck about monthly petrol price.


the miskin ones are bodoh. end of story..hahahha

Mana myr vs usd

2015 times USD to MYR berapa?

People that imply they are the exceptional 10%....heh..

Only 47% are sohai.

You don't kena racun bunga chibai.

Running cost........

Refinery Parts are trade in USD........