Actual Cost of Petrol Price

What sort of commercial price that the Minister of Domestic Trade and Consumer Affairs was referring to? The commercial price is the price where the petrol stations has to pay to the oil depots as outlined below.

Oil depot price is the crude oil (at world price) that has been processed at oil refinery and it reflects the actual product price as produced by the oil refinery.

Commercial price on 15 Sept 2008 (there was a typo mistake in the chart) was at RM2.81, petrol stations were retailing petrol at RM2.55 and thus the actual subsidy was only RM0.26 per litre instead of RM0.30 as claimed by the government all the time. At least there were some subsidies as otherwise we would be paying more.

As you go down the chart, commercial price was cheaper than petrol retail price from 10 Oct 2008 onwards.

By 23 Oct 2008, the commercial price at oil depots was RM2.00 (at which the world crude oil price was at US$64.15) and with the claimed subsidised rate of RM0.30, the actual petrol price should have been retailing at RM1.70 but then the consumers were still paying the price of RM2.30. This was RM0.60 above the subsidised rate if there was any at all.

As had been revealed by the government, the petrol station would have earned RM0.12 per litre with the respective petroleum companies earning RM0.19 per litre too even at the retail price of RM1.92. It did mention that at RM1.92 less (RM0.12 + RM0.19) = RM1.61, the government would still have earned profits. Why? Because commercial price has dipped way below RM1.61 by now.

If the government was still earning profits, what was the government subsidising then? This question is being posed based on pre-June 2008 (the then 41% price increase) as even then the government was gladly saying that they were subsidising petrol price. Not that people or even me are asking for more subsidies but the government said it was subsidising all this while ................ who's bluffing who or what was missed out? What is the government's agenda in not telling truth?

Please bear in mind that the government did mention that effective 1 Nov 2008, the RM0.30 subsidy has ceased. By looking at the chart, we doubt so.

The current Deputy Prime Minister has prepared the hearts of all Malaysian citizens by saying "Don't expect pump prices to be constantly reduced". He has said that the government has to review whether to reduce the petrol price to match the drop in world crude oil price. Why must the government review when the prices drop but didn't even consider properly when they increased the price by 41% at one go in June 2008?

He mentioned that "We cannot afford this kind of volatility. The people may not be able to cope with these sudden changes." Please enlighten us, who are the "people" that you were referring?

Reading: Malaysians are now paying petrol tax - Malaysian Insider

Related post - Is Malaysia's Fuel Price Cheaper?
Tags: Petrol Price, Fuel Price, Oil Depot Price, World Crude Oil Price, Malaysia, Minister of Domestic Trade and Consumer Affairs, Petrol Station

Largest Hotel in Sudan

Went out for meeting today and passed by this building which is known as the largest hotel in Sudan, Burj Al Fateh. Standard for a deluxe room is US$400 per night (excluding 20% tax).

Some of my colleagues have been in it for meals and my turn ......... let's see ....... counting my money as you have to pay through your nose for eating there. Not today.

This hotel is owned by the Libyans and rumours were saying that one of Muammar Gaddafi's (President of Libya) son has an interest.




Fantastic architecture design that resembles a sail from the side view (1st pic).















This is a large supermarket located about 5 minutes' drive from my house, called Al Amarat Center. Their main branch is located around the diplomat enclave at Amarat which is about 15 minutes' drive from the house.






Cost of living is really high in Khartoum even though it's a third world country.

Example (2 Sudanese Pound = US$1.00):-
* five pieces of hot dog bread - US$0.75
* minced beef of 400g - US$3.28
* few small tomatoes - US$1.40
* processed chicken fillets - US$16.00
* two dozens of eggs - US$6.50

This has not taken into account other food or ingredients bought earlier in order to cook proper meals.
Tags: Burj Al Fateh, Khartoum, Al Amarat Center, Amarat

Dance in Lebanese Restaurant

Went over to Assaha Traditional Village at Khartoum 2 area for drink after dinner. This is a restaurant opened by Lebanese.

It was really packed. This is one of those better place around Khartoum at the moment. Mostly expats or richer Sudanese will have their meals here. Out of a sudden, a group of Lebanese came around with drums (various) and a mouth piece instrument too (that blows like a trumpet).

No idea what celebration or occasion they were so happy about. Just enjoyed their care free dance.

I have recorded their dance in video format but somehow couldn't get the play the sound.

Lots of Lebanese expats who were eating in the restaurant joined in and clap their way throughout this group's presence amongst the diners.

No regrets in coming out for the night and we left almost after everyone has gone home at 11pm plus.

Tags: Assaha Restaurant, Assaha Traditional Village, Lebanese Restaurant, Lebanese Dance, Khartoum 2

Bruce Willis Joined Malaysian Investors

The infamous Hollywood actor, Bruce Willis, starring in many action packed movies such as Die Hard joined Malaysian investors, Petra Group, in investing in a USA company known as Elastomer Technologies Ltd ("ETL"). Tried to google the company's name but nothing surfaced. ETL was supposed to venture into the business of devulcanisation of recycled rubber compound .... whatever you call it.

Bruce Willis has finally found someone that matched his robust movie character and required the US court to intervene. Bruce Willis exercised his option in calling back his investment in ETL but the money was delayed which warranted him to issue a legal demand against ETL for the return of his US$900,000. Maybe economy is really bad in USA ............

Rumours were saying that even Al Gore and Mel Gibson were involved in the business too. Anyone can confirm? This could be the reason that pulled Bruce Willis into the investing team.

The case between Bruce Willis v. Elastomer Technologies Ltd is lodged under 08-7670, U.S. District Court, Central District of California.

Reading: Bruce Willis Sues Malaysian Group Over Rubber Venture - Bloomberg
Tags: Bruce Willis, Petra Group, Elastomer Technologies Ltd, Devulcanisation, Al Gore, Mel Gibson, U.S. District Court, Central District of California

Less EPF Cut Means More Income?

Many people have been thinking of getting the extra income come 1 Jan 2009 when the mandatory Employees' Provident Fund ("EPF") deduction is reduced to 8% of the gross salary instead of the current 11%.

We take a case study to see the benefit that could be derived if your monthly basic salary RM4,000:-

- If your monthly EPF contribution is 11% (RM440), taxable income = RM3,560, income tax payable = RM77.

- If your monthly EPF contribution is 8% (RM320), taxable income = RM3,680, income tax payable = RM109.

Conclusion: If you choose to contribute 8%, you will end up paying more income tax to the government, which will make the government richer.

Finance Minister Najib said this measure is meant to boost up the slow-down market, but from this example we see that the money does not go into the market. Instead the money goes direct into the government's pocket through the greater amount of income tax that we will have to pay. Obviously this measure does not help the market at all.
Tags: EPF, Employees' Provident Fund, Taxable Income, Malaysian Income Tax

Bad Times in Kuala Lumpur

This is a true account that happened after a heavy downpour on 16 Oct 2008 to a friend's friend who's working in Cycle & Carriage Bintang Berhad, Petaling Jaya. Time is bad and the day you take for granted on your safety, that could be the day you'll live to regret it.

Praying to God for his protection is definitely a need but our neglectful lifestyle should be looked into.

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Dear Colleagues,

I would like to share my experience with you on what actually happened last night while on my way back from the office alone.

It was raining heavily while I left the office about 7.00pm and I was caught in the traffic jam along the way home. On reaching Kampung Tunku, I noticed some bikes tailing me closely. My reaction was bikes riders will not be so gentle on the road, even on rainy days, they often speed. As I could not view clearly in the downpour, I activated my rear windshield wiper to have a better look.

I saw three bikes behind me. Following that, one rider moved in front of my car towards the left and two riders were behind me for a while. And I heard a very loud crashing sound at the rear of my car.

I did not stop to investigate but accelerated and continued my journey home despite whatever damages I have to incur for repairs. After a while, the three bikers went missing and guess what next. A breakdown tow truck was behind me next. Along the way, my drive was not comfortable as I felt that my car was not moving in the right way.

I continued my journey, whatever, and on reaching home, guess what, two tires, LH Front and Rear were punctured flat.

We always read and heard that such incidents are happening daily, and this time I experienced this myself.

Please inform all your wives and loves ones not to stop the car while driving alone, just carry on the journey.

With regards,
Irene Kok

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My personal advise upon reading this email is for you, if you suspect anything amiss, to drive to the nearest relative / friend's house to check on the damage. Never continue driving too far. Seek help at the nearest place that you are familiar with.

Imagine the assailants were to pursue further and you went ahead to accelerate. It would be a devastating end .........................

Tags: Kampung Tunku, Petaling Jaya, Cycle & Carriage Bintang Berhad

Main Cause of Stock Exchange Meltdown

Financial gurus / world class economists / professional stock traders are putting their brains together to find an answer or a method in trying to put a stop to the selldown in world stock markets.

They missed one fundamental point - communication.

(Picture was stolen from Daniel Ng)

Tags: Stock Exchange Meltdown, Stock Market, Financial Guru, Economist, Stock Traders