RON 97 up 1 cent tomorrow

Calculation and table of estimated prices can be found at this link: https://goo.gl/cpYiBN. No guarantees any of the estimates will be correct as the government has been heavily subsidizing the fuel price. The good news is that RON95/Diesel has hit the ceiling and will continue on to be RM2.05 & RM2.15 respectively for the foreseeable future.

If calculating 28/9 to 4/10 cycle (Tuesday to Monday - weekends are using Friday prices), the actual retail price for RON95 & RON97 should be RM2.69 and RM2.99 respectively (±1 sen).

Thus, I estimate that RON97 would go up by 2 sen from last week to RM2.78 (±1 sen).

Note: RON95 will be capped at RM2.05/l & Diesel at RM2.15/l source

2nd Note: I am still trying to find the right formula (if any) by doing several test methods available to see in the sheet link above and going to the "Fuel Test Calc" tab. If you have any ideas, do sound out in this thread.

It will be crazy to keep subsidizing ron95 at 2.05/l, when brent crude has jumped to USD80.

If gov is going to allow interstate travel by around next week or week after, I guess this week they need to increase ron95 by 5c at least to 2.10/l.
And then increase it another 5c next week to 2.15/l - just in time for massive interstate travel. And increase it gradually as brent crude increase globally towards 100.

The subsidy rate need to be capped at 20-30c per liter only at max, which still runs in billions of subsidy.
Current subsidy is more than 50c/l already - crazy. How long can gov intervene to keep inflation at bay.

Let see what MOF move

Reference:
From Paultan article in March 2021: PM said - every 30c subsidy of ron95 - it is estimated RM 3 bil gov spending to put a cap on price

This post has been edited by muhammadb: Oct 5 2021, 12:05 PM

RON 97 up 1 cent tomorrow

The thing is many people are already struggling due to covid so increasing fuel prices will face a backlash. Anyway just enjoy while we can. Lol

Gov is creating a sort of like “fake” economic environment where inflation is capped with the heavy subsidies on ron95, cooking gas, cooking oil, electricity and etc whilst other countries are grappling with energy crisis now.

How long can we last without embracing inflation.

Bulk of the ron95 subsidies still goes to people who drive big cars/motorbikes, not the common folks or poor people.

This post has been edited by muhammadb: Oct 6 2021, 07:03 PM

I would understand now that Pak Lah idea maybe work best, no subsidy for petrol but give cash for eligible people to use for subsidy petrol. Cons, harakiri politicians and all price gone up crazy

Targeted fuel subsidy will not work cuz difficult to properly target cuz got many loopholes to be exploited. Indonesia has been tinkering with this idea also for the longest of time and can never implement. Fuel subsidy is either just give to all equally or not at all, that's it.

Yes, implementation of targeted is very difficult. I was involved in that project, and it was impossible to get stakeholders happy, as they believe syndicates will sell low income persons subsidies

This fake economy, needs to last for at least throughout the recovery period of the country.

Once, the country is back economically, then reduction of subsidy can be done. Malaysia is at its lowest point, long lockdowns, and now is not the time to reduce subsidy

I would suggest that the gov announce reduction in subsidy say March 2022, and allow it to float (reduced subsidy)

Calculation and table of estimated prices can be found at this link: https://goo.gl/cpYiBN. No guarantees any of the estimates will be correct as the government has been heavily subsidizing the fuel price. The good news is that RON95/Diesel has hit the ceiling and will continue on to be RM2.05 & RM2.15 respectively for the foreseeable future.

If calculating 5/10 to 11/10 cycle (Tuesday to Monday - weekends are using Friday prices), the actual retail price for RON95 & RON97 should be RM2.83 and RM3.13 respectively (±1 sen).

Thus, I estimate that RON97 would go up by 2 sen from last week to RM2.79 (±1 sen).

Note: RON95 will be capped at RM2.05/l & Diesel at RM2.15/l source

2nd Note: I am still trying to find the right formula (if any) by doing several test methods available to see in the sheet link above and going to the "Fuel Test Calc" tab. If you have any ideas, do sound out in this thread.

Ron 97 up 10 cents tomorrow !!

LOL! Finally after artificially controlling the price

This beats the highest that I ever pumped, RM2.81 back in Nov 2018. Luckily I only pump once per 2 months nowadays.

The gov/Mof advisors should have increased it gradually over time, rather than a 10c increase in one go. Now industries players will need to increase their prices quietly in anticipation of ron95/diesel massive increased also (it is just a matter of when).

MOF should just deregulate RON97 price to let the market set it.
Not sure what's MOF purpose of controlling RON97 right now.

I too don't understand why they subsidized RON97. No normal consumer car need RON97 and those that can afford the cars that requires RON97 can afford to pay the market rate.

I guess that they controlled / subsidized RON97 because some unscrupulous vendors try to increase prices for basic necessities when ANY petrol price increase. Either that or they just don't want people to panic as when RON97 increase, RON95 may increase soon too.

The people that control ron97 price are the ones that pump ron97.. 🤣

just a guess, but maybe it's to keep things "status quo" for the petrol dealers margin ?

also if they were to float RON97, by market logic prices would be low where it's competitive (city) and higher where people have less choice (outskirts ... or even East Malaysia). Just thinking about the complaints this would get is enough to keep the subsidy going

This post has been edited by corad: Oct 15 2021, 11:58 AM

Calculation and table of estimated prices can be found at this link: https://goo.gl/cpYiBN. No guarantees any of the estimates will be correct as the government has been heavily subsidizing the fuel price. The good news is that RON95/Diesel has hit the ceiling and will continue on to be RM2.05 & RM2.15 respectively for the foreseeable future.

If calculating 12/10 to 18/10 cycle (Tuesday to Monday - weekends are using Friday prices), the actual retail price for RON95 & RON97 should be RM2.96 and RM3.26 respectively (±1 sen).

Thus, I estimate that RON97 would go up by 10 sen from last week to RM2.97 (±1 sen).

Note: RON95 will be capped at RM2.05/l & Diesel at RM2.15/l source

2nd Note: I am still trying to find the right formula (if any) by doing several test methods available to see in the sheet link above and going to the "Fuel Test Calc" tab. If you have any ideas, do sound out in this thread.