Petrol, up up and away!
Thursday, June 05, 2008 | Author: Dav
Greetings,

Last night the Govt announced that the price of petrol at the pump will go up from MYR 1.97 to MYR 2.70 (roughly by 40%). I was a little taken aback with the announcement because I would have thought the Govt would have pushed the price up a little at a time till it reached a value they were ok with.

If you didn't know, here in Malaysia, the Govt spends a huge chunk of change on subsidising petrol for everyday consumers. They've been able to keep the price low and stable for a long time now, but with the new price hikes and other issues coming in, I think re-organizing the petrol subsidy is a good idea. The new plan to redistribute the subsidy and other changes are shown below, taken from the Malaysian newspaper The Star.

The Changes

Price increase

Petrol – RM0.78/litre
Diesel – RM1/litre
Electricity:
Commercial and industrial – 26%
Retailers and small restaurant operators – 18% (for first 200kWh per month)
Residential – new pricing structure for users above 200kWh per month

Prices effective today 05/06/2008 (per litre)

Petrol – RM2.70 (previously RM1.92)
Diesel – RM2.58 (previously RM1.58)

Rebates

> RM625 per year
For private vehicle with engine capacity of 2000cc and below, including private pickup trucks and jeeps with engine capacity of 2500cc and below.

> RM150 per year
For each private motorcycle with engine capacity of 250cc and below

> RM200 reduction on road tax
For private petrol and diesel vehicles with engine capacity above 2000cc

> RM50 reduction on road tax
For private motorcycles with engine capacity above 250cc

Streamlined diesel subsidy
(for approved transportation companies, vessel owners and fishermen)

> Diesel – RM1.43 per litre (previously RM1 per litre for fishermen and RM1.20 per litre for vessel owners)

> RM200 per month for every owner and employee of Malaysian-owned vessels registered with the Fisheries Department

> 10sen per kilo incentive for every kilogram of fish caught by registered vessels

> 10sen per litre for every litre of diesel used by river transportation operators according to approved quota

Gas subsidies restructure
(for Peninsular Malaysia)

> For power producers – from RM6.40 per mmBtu to RM14.31 per mmBtu

> For industrial users (consuming less than 2mmscfd) – from RM9.40 per mmBtu to RM24.54 per mmBtu

> For industrial users (consuming above 2mmscfd) – from RM11.32 per mmBtu to RM32.56 per mmBtu

Electricity tariff restructure

> Households using 200kWh and below every month will not be affected. This covers 59% of households in Peninsular Malaysia with a monthly bill under RM43.60.

> Commercial and industrial users face 26% increase. Small retail and business outlets consuming under 200kWh per month face 18% increase.

Liquefied Petroleum Gas (LPG) and Natural Gas for Vehicle (NGV)

> No change. Prices remain at RM1.75 per kg (LPG) and RM0.635 per litre (NGV)

Oil palm windfall tax

> For Peninsular Malaysia 15% for every tonne of CPO exceeding RM2,000

> Sabah and Sarawak 7.5% for every tonne of CPO exceeding RM2,000 > Abolition of cess tax

Service tax threshold for restaurants and eateries

> Service tax now for restaurants with annual sales of RM3mil (previously RM500,000)

All in all, I think its a positive move by the Govt. Sure, prices are going up, but its not as bad as other countries. We need to buckle down people!


Dav out
This entry was posted on Thursday, June 05, 2008 and is filed under , , . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 comments:

On 12:55 am , Hurk said...

As long as you thinking about taking the car instead of walking or taking the bike for shorter distances the petrol price is too low.
The petrol price is way under the price it should be at.

 
On 9:07 am , Dav said...

Yeah, its really low as it is, so I see no reason to complain. Sure, its higher then last time, but still subsidised.

 
Blog Widget by LinkWithin