New Malaysia | Govt Programmes | Oct 15, 2019 @ 23:15
BSH recipients can check eligibility for fuel subsidy online from today
A total 2.9 million of Bantuan Sara Hidup (BSH) recipients from the B40 group who qualify for the Petrol Subsidy Programme (PSP) can check their eligibility through the psp.kpdnhep.gov.my. portal starting today.|Read more >|NST
New Malaysia | Petrol Subsidy Programme (PSP) | Oct 15, 2019 @ 16:00
Fuel subsidy card for middle income earners ready by next March, says finance minister
Lim Guan Eng today said the fuel subsidy card for Malaysian middle-income earners, grouped as M40, will be rolled out from March 2020.|Read more >|Malaymail
The New Government RON95 Fuel Subsidy Scheme
Starting January 2020 the government will float the RON95 fuel price and only eligible Bantuan Sara Hidup (BSH) recipients in Peninsular Malaysia will be entitled to fuel subsidy.
Who is eligible?
Bantuan Sara Hidup (BSH) recipients in Peninsular Malaysia
Cars with 1,600cc engines and below.
Car with larger than1,600cc engines must be over 10 years old.
Motorcycles with 150cc engines and below.
Motorcycles with larger than 150cc engines must be over 7 years old.
What is the subsidy amount
Eligible BSH recipients will be entitled to monthly fuel subsidy of:
Car owners - RM120 every four months (RM30 a month)
Motorcycle owners - RM48 every four months (RM12 a month).
Who is not eligible?
The fuel price of RON95 in East Malaysian (Sabah, Sarawak and Labuan) will be floated and capped at RM2.08 a litre. Low-income BSH households in East Malaysian will not be entitled to monthly any monthly fuel subsidy.
Targeted Fuel Subsidy scheme to commence next year
The government will provide a monthly petrol subsidy of RM30 for car owners and RM12 for motorcycle owners.|Read more >|SunDaily
RON95 price to be floated in January, subsidy only for BSH recipients
The price of RON95 will be floated gradually from January next year when the government rolls out its targeted fuel subsidy initiative.|Read more >|NST
Petrol subsidy details out: RON95 price to be floated, subsidies for BSH recipients
Improvements in early intervention services for special-needs children have created greater awareness among healthcare providers, teachers and parents, says Dr Lee Boon Chye.|Read more >|TheStar
Targeted fuel subsidy scheme commences Jan 1, says domestic trade minister
The Targeted Fuel Subsidy Scheme will be implemented on January 1, 2020, said Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail.|Read more >|Malaymail
New Malaysia | Fuel Subsidy | Oct 08, 2019 @ 21:24
No fuel subsidies for East Malaysia as consumption is lower than in peninsula: Saifuddin
Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail says vehicle owners in East Malaysia will not receive petrol subsidies as consumption in Sabah and Sarawak is relatively lower than in the peninsula.|Read more >|SunDaily
New Malaysia | Fuel Subsidy | Oct 08, 2019 @ 16:19
Why spend RM25mil to develop petrol subsidy scheme when existing database already available, asks Wee
The government has been urged to give a full explanation over the RM25.03mil tender to develop the subsidy mechanism under its newly announced petrol subsidy scheme, says MCA president Datuk Seri Dr Wee Ka Siong.|Read more >|TheStar
New Malaysia | Fuel Subsidy | Oct 08, 2019 @ 14:25
M40 left out as usual, Wong says after petrol subsidy is announced
Every three in four Malaysians finds it hard to set aside RM1,000 for emergencies, says MCA Youth chief Nicole Wong.|Read more >|TheStar
New Malaysia | Fuel Subsidy | Oct 08, 2019 @ 14:04
PM: New petrol subsidy for only one car per person in B40 bracket
The government’s new petrol subsidy scheme only allows for one car per individual in the B40 group, says Tun Dr Mahathir Mohamad.|Read more >|TheStar
New Malaysia | Fuel Subsidy | Oct 08, 2019 @ 09:11
Review fuel subsidy mechanism, government urged
Take a second look at the newly announced Fuel Subsidy Scheme (PSP), which is estimated to benefit 2.9 million vehicle owner-recipients of the Bantuan Sara Hidup (BSH) beginning early next year, the government was urged yesterday.|Read more >|SunDaily
New Malaysia | Fuel Subsidy | Oct 08, 2019 @ 07:00
RON95 price to be floated
The price of RON95 will float according to the market once the targeted fuel subsidy scheme kicks off in January next year. Under the scheme announced by Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail yesterday, only recipients of the Bantuan Sara Hidup (BSH) who are based in Peninsular Malaysia are entitled.|Read more >|TheStar
Latest Malaysia Fuel Price (Petrol RON95, RON97 & Diesel)
Retail Fuel Prices: Week Nov 16 - Nov 22, 2019
Petrol RON 95 RM2.08 per litre (RM0.00)
Diesel RM2.18 per litre (RM0.00)
Petrol RON 97 RM2.70 per litre (+RM0.13)
Weekly average Oil prices and the USD/MYR rates
(Week Jan 07 - Jan 13, 2018) % changes compared to May 01, 2018
Oil Price in MYR RM250 per barrel ( -19%)
USD/MYR RM4.113 ( +4%)
Brent Oil Futures USD60.87 per barrel ( -22%)
What happens to fuel prices at the pump when.....
Oil Prices Increases
If the Ringgit weakens
If the Ringgit strengthens more than oil prices
If Ringgit strengthens less than oil prices
Both the USD/MYR exchange rate and oil price levels are important components to gauge the pricing of our fuel prices at the pump.
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Calculating Malaysia's Fuel Prices @ the Pump Using APM
The new Government has reintroduced the weekly float fuel pricing system starting January 05, 2018, but with two changes. The calculation of the weekly fuel prices uses the Automatic Pricing Mechanism (APM) (as used by the previous BN government) but with an increase of 2.8 sen/litre in the fixed profit margin of petrol station operators for RON95 and RON97 and 3.00 sen/litre for diesel. The other change is the time-frame of the weekly float price.
The new Government has introduced a price cap of RM2.20 per litre for RON95 and RM2.18 per litre for diesel to the float system to protect consumers from future oil price increases. Should the weekly float price for RON95 and Diesel rise above the capped limit, the government will subsidise the difference in the capped price and market price.
Malaysia's retail fuel prices are controlled and fixed by The Ministry of Domestic Trade, Co-operatives and Consumerism (KPDNKK) on a weekly basis. Under the APM, The weekly fuel prices will be announced every Friday and will be enforced the following day, Saturday, until the next Friday. The current week's retail fuel prices are determined by the previous week's oil prices and exchange rates.
Hence, if in the previous week the average oil price was higher and the Ringgit was weaker in comparison to the previous week, in the coming week consumers are likely to pay higher fuel prices at the pump and vice versa.
RON95 fuel price is calculated using a widely adopted managed float system called Automatic Pricing Mechanism (APM). It is a systematic and transparent calculation method comprising two components to it; fixed marketing and distribution costs which add up to RM0.488 per litre and variable product cost linked to MOPS95 (Mean of Platts Singapore).
RON95 Fuel price @ the Pump = MOPS95 (RM) + Fixed Costs
(1) MOPS95 (RM) = MOPS95 (USD) x USD/MYR rate
MOPS95 is quoted and traded in USD. It is converted into RM by applying the USD/MYR exchange rate. MOPS95 price from the previous week is used as a reference in price calculation.
(2) The fixed cost components total RM0.317 per litre, Total Operational & Distribution, is charged by oil and petrol companies. The breakdown is as follows:-
"Alpha" Buffer RM0.050
Oil Company Margin RM0.050
Operational Cost RM0.095
Petrol Dealer Margin RM0.15 (previously RM0.122)
Total Operational & Distribution RM0.345 (previously RM0.317)
MOPS95 - Mean of Platts Singapore
APM - Automatic Pricing Mechanism
We are an oil producing nation, why are our fuel prices affected by the USD/MYR exchange rate?
According to a MIDF Research report, although a net crude oil exporter, Malaysia is a net importer of refined petroleum products. We export our high-quality light and sweet crude oil which commands a premium and import lower-cost heavy sour crude oil mostly from producers in the Middle East to be refined at local refineries into fuel for domestic consumption. Due to the limited local refining capacity, Malaysia imports refined diesel and petrol to meet the local demand. Based on statistics provided by the Malaysia Energy Information Hub, in 2015, we imported 49% of our diesel and almost 60% of petrol. All crude oil and refined petroleum products are quoted in USD, hence, fuel prices at the pump are subject to fluctuations in both oil prices and USD.
What is MOPS95 and why do we use it to calculate our fuel prices?
MOPS95 represents the end of day assessment for the average of Singapore prices for 95 Octane Petrol. MOPS95 which is a refined petroleum product price index constitutes 70% to 80% of our RON95 fuel price. MOPS95 represents the cost of crude oil and refining. The Platts organisation collects extensive data on trading through the Singapore hub and publishes daily prices (a high and low) for various grades of commonly traded fuel. Malaysia imports approximately 60% of its petrol consumption in the form of refined products from Singapore.
What is included in the MOPS95 pricing?
The MOPS95 price is the average price of refined 95 Octane Petrol. In Malaysia, for every litre of RON95 retailed, approximately 85% is the cost of MOPS95. Crude oil cost, the feedstock makes up approximately 80% of MOPS95 prices while the remaining portion is for the cost of refining and processing.
Why is Brent Oil price used (instead of MOPS95) to gauge fuel prices?
We often use Brent Oil prices as a gauge and indication if fuel prices are moving up or down. MOPS95 prices are only made available to Platt’s subscription customers, hence the layman often uses freely available Brent prices to trend and gauge fuel price levels.
Due to the great diversity in crude oil quality and location where they are produced and consumed, it makes it difficult to have a singular benchmark to price crude oil. Brent, instead of West Texas Intermediate (WTI) is often the choice used for bench-marking fuel prices because roughly two-thirds of all crude contracts around the world reference Brent Blend, making it the most widely used marker of all.
Why is the USD/MYR rate important in determining the price of our fuel?
As the Singapore MOPS95 price is quoted in USD but fuel is retailed in Ringgit, USD/MYR exchange rate movements are consequential in the pricing of our fuel prices. If the Ringgit weakens more than oil prices in a declining oil market, we still have to pay more for our fuel at the pump. Essentially, the USD/MYR exchange rate movements can offset or magnify changes in Singapore fuel prices, since both costs of crude oil and refining are significant portions of the APM formula.