Friday, October 17, 2008

Petrol Price Must Be Revised Fast

I just have to take a screenshot of our Dato' Shahrir Abdul Samad's blog on his caption about the decrease of petrol price.


The following paragraph was extracted from his blog in which he did give a press statement about the same issue too:-

"There is a possibility that the price of petrol would revert to the old price of RM1.92 a litre which motorists had enjoyed before the price hike in June. Domestic Trade and Consumers Affairs Minister Datuk Shahrir Abdul Samad said this would be possible if world crude oil price continued to dip to below US$72 (RM252) a barrel."

Please tell me what's the world crude oil price now. Yesterday, the world crude oil price dropped to a low of US$69.85 per barrel. Looks like the government has to announce a revised petrol price that has to be effected tonight itself ............ without any further delay. Or will the government wait for another three weeks before they revise the petrol price? In USA, every US$0.10 decline of gas price will save consumers approximately US$100,000,000.

But this has put the petrol station owners in a fix. The Malaysian government kept changing the petrol price in large percentages which will erode the petrol station owners' income. I'm not surprised if we find petrol stations without petrol again as the petrol station owners will order less to safeguard their revenue.

Imagine they have ordered 50,000 litres of petrol @ RM2.20 per litre (at current petrol price of RM2.30) and suddenly the government announces a new petrol price of RM2.05 to be effected tomorrow. Effectively, the new purchase price for petrol will be at RM1.95 for petrol station owners now. Potentially, they have lost out on the additional revenue of RM12,500 per petrol tanker with the sudden price announcement.

They are still business owners who operate the petrol stations at a profit and not as charity organisations. True that there are risks in business but these are risks (government changing prices) that they can't foresee at all.

Reading: Gas Prices Dropping: The Good News and Bad News - Time
Tags: Dato' Shahrir Abdul Samad, Petrol Price, Fuel Price, Gas Price, World Crude Oil Price, Domestic Trade and Consumers Affairs Minister, Petrol Station

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5 Comments:

Blogger amei79 said...

i just wonder how USA and other countries make it without affect the petrol stations' profit.

but in our country, this plan seem start running without any proper planning...

btw, after the decrease of the petrol price, other groceries seem stil not drop in the price!

17 October, 2008 19:19  
Blogger foongpc said...

I've never really thought about petrol station owners' problems. Yes, it's a real problem for them. But consumers want the Government to reduce the price as soon as possible when they hear the news of the world oil price drops. And I'm a consumer, so of course I support that. Well, maybe they need to think of a solution for the petrol stations.

18 October, 2008 01:16  
Blogger Johnny Ong said...

amei - no idea on usa's condition for petrol station owners but in s'pore the owners can plan better because it follows it changes everyday and at least with good planning, u can withstand the daily changes which is quite small

the govt thot that by reducing the petrol price, everything else will drop in tandem ...... u mean they have just been born in malaysia? only way for all prices to fall in tandem is to have a major recession .... too bad

foong - someone just have to think abt it lah. when petrol stations start to close one by one, it will create big issues also

18 October, 2008 02:24  
Blogger bZbee said...

i think the government just needs to steal the extras they've made for their own project/s...all said...

20 October, 2008 15:03  
Blogger Johnny Ong said...

bzbee - someone u know inside told u that??

20 October, 2008 16:09  

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