WHAT IS NEVER MENTIONED IN Mainstream Media like NST/TheStar/Utusan/BH
are these facts….
Malaysian PerCapita Income USD 5000
Singaporean PerCapita Income USD 25000
Further The Star made a comparison of prices in
Thailand , Singapore and Indonesia .
For Thailand it is quoted at RM3.90/liter,
however are they aware that in Thailand new cars are cheaper than Malaysia by
RM10,000? They pay only one life time for their driving license? No renewal fee
after that? Also that goes for road tax as well? And do TheStar also aware that
you can drive all the way from Hadtyai to Bangkok on a six lane highway without
paying any Tolls ??!!
Whereas here in Malaysia you have to pay yearly renewal for road tax , driving
license and TOLLS, TOLLS, TOLLS!!!
For Singapore how can you quote RM 5.20 ? Please quote in Singapore Dollars
because they are earning in Sing Dollars. You might as well say Europeans are
paying RM10/liter. RM5.20/liter = Sing $ 2.20/liter, still cheaper than
Malaysia in view of fact that Singapore is not a crude oil exporter. Are you
saying that you fill up petrol in Singapore by paying Ringgit?
In economy, dollar to dollar must be compared as
apple to apple. Not comparing like durian in M’sia is much cheaper than durian
in Japan !! Of course-lah, Japan is not durian producer!!! Comparing Malaysian
durian with Thailand durian make more sense!!
For Indonesia we might say is cheaper there at RM2.07/liter but compare that to
their level of income!
Now, let us compare the price with OIL PRODUCING
UAE – RM1.19/litre
Eygpt – RM1.03/litre
Bahrain – RM0.87/litre
Qatar – RM0.68/litre
Kuwait – RM0.67/litre
Saudi Arabia – RM0.38/litre
Iran – RM0.35/litre
Nigeria – RM0.32/litre
Turkmenistan – RM0.25/litre
Venezuela – RM0.16/litre
MALAYSIA – RM2.70/litre
RM 2.70!!! Individual perspective:
As of last month a Toyota Vios would ’cause a
damage’ of about RM 89,000.
In the international market, a Toyota Vios is
about USD 19,000
USD 19,000 = RM 62,700 (using the indicative
rates of USD 1 = RM 3.30)
That makes Malaysian Vios owners pay an extra RM
This RM 26,300 should be cost of operations,
profit and tax because the transportation costs have been factored in to the
RM 26,300/ RM625 petrol rebate per year
translates to a Vios being used for 42.08 years.
I do understand that the RM 625 is a rebate
given by the government, but it also means that one has to use the Vios for
42.08 years just to make back the amount paid in taxes for the usage of a
foreign car. Would anyone use any kind of car for that long?
Now with these numbers in front of us, does the
subsidy sound like a subsidy or does it sound like a penalty? This just seems
to be a heavy increment in our daily cost of living as we are not only charged
with high car taxes but also with a drastic increase in fuel price.
With all the numbers listed out, I urge all
Malaysians to join me in analyzing the situation further.
Car taxation is government profit, fuel sales is
Petronas’ (GLC) profit which also translates into government profit. The
government may ridicule us Malaysians by saying look at the world market and
fuel price world wide. Please, we are Malaysians, we fought of the British, had
a international port in the early centuries (Malacca), home to a racially mixed
nation and WE ARE NOT STUPID!!!
We know the international rates are above the
USD 130/barrel. We understand the fact that the fuel prices are increasing
worldwide and we also know that major scientist are still contradicting on why
this phenomenon is happening. Some blame Bush and his plunders around the world
and some blame climate change and there are others which say petroleum ‘wells’
are getting scarce.
Again we go back to numbers to be more straight fwd
1 barrel = 159 liters x RM2.70/liter = RM 429 or USD 134
On 1 hand, we are paying the full cost of 1 barrel of crude oil with RM2.70 per
liter but on the other hand the crude oil only produces 46% of fuel.
Msia sells crude oil per barrel at USD130 buys back Fuel per barrel at USD134.
And not forgetting, every barrel of fuel is produced with 2 barrels of crude
1 barrel crude oil = produce 46% fuel (or half of
crude oil), therefore
2 barrel crude oil = approximately 1 barrel fuel
In other words, each time we sell 2 barrels of crude
oil, equivalently we will buy back 1 barrel of fuel.
Malaysia sell 2 barrel crude oil @ USD 130/barrel =
USD 260 = RM 858
then, Malaysia will buy back fuel @ USD 134/barrel =
Thus, Malaysia earn net extra USD 126 = RM 416 for
each 2 barrel of crude sold/exported vs imported 1 barrel of fuel !!!
(USD 260-134 = USD 126 = RM416)
So where this extra USD 126/barrel income is channeled
to by Malaysian Govt?????????
1 barrel crude oil = 159 liters.
46-47% of a barrel of crude oil = fuel that we use in
46% of 159 = 73.14 liters.
@ RM 2.70/liter x 73.14 liter = RM197.48 of fuel per
barrel of crude oil. This is only 46% of the barrel, mind you. Using RM 3.30 =
USD 1, we get that a barrel of crude oil produces USD 59.84 worth of petrol
fuel (46% of 1barrel).
USD 59.84 of USD 130/barrel turns out to be 46% of a
barrel as well.
Another 54% = bitumen, kerosene, and natural gases and
so many more.
And this makes a balance of USD 70.16 that has not been accounted for.
So this is where I got curious. Where is the subsidy
if we are paying 46% of the price of a barrel of crude oil when the production
of petrol/barrel of crude oil is still only 46%?
In actual fact, we still pay for this as they are
charged in the forms of fuel surcharge by airlines and road taxes for the
building of road (because they use the tar/bitumen) and many more excuse
charging us but let us just leave all that out of our calculations.
As far as I know, only the politicians who live in
Putra jaya and come for their Parliament meetings in Kuala Lumpur
(approximately 60+ km) are the ones to gain as they claim their fuel and toll
charges from the money of the RAKYAT’s TAX.
It is so disappointing to see this happen time and
time again to the Malaysian public, where they are deceived by the propaganda
held by the politicians and the controls they have over the press.
Which stupid idiot economist equates rebates for
rich or poor with the cc of the vehicles? An average office clerk may own a
second hand 1300cc proton Iswara costing $7,000 (rebate = $625) while the
Datuk’s children can own a fleet of 10 new cars of BMW, Audi and Volvo all less
than 2000cc costing $2 millions and get a total rebate of $625 x 10 = $6,250!
Wow what kind of economists we are keeping in Malaysia …wonder which phD
certificate that they bought from…
Misleading concept of Subsidy:
The word “subsidy” has been brandished
by the BN government as if it has so generously helped the rakyat and in doing
so incurred losses. This simple example will help to explain the fallacy:
Ahmad is a fisherman. He sells a fish to you at $10 which is below the market
value of $15. Let’s assume that he caught the fish from the abundance of the
sea at little or no cost. Ahmad claims that since the market value of the fish
is $15 and he sold you the fish for $10, he had subsidised you $5 and therefore
made a loss of $5.
Question : Did Ahmad actually make a profit of $10 or loss of $5 which he
claimed is the subsidy?
Ahmad makes a profit of $10 which is the difference of the selling price ($10)
minus the cost price ($0 since the fish was caught from the abundance of the
sea). There is no subsidy as claimed by Ahmad.
The BN government claims that it is a subsidy because the oil is kept and
treated as somebody else’s property (you know who). By right, the oil belongs
to all citizens of the country and the government is a trustee for the
citizens. So as in the above simple example, the BN government cannot claim
that it has subsidised the citizen!