Malaysia Gasoline Prices 2008-2013

Countries with subsidised gasoline

A number of countries subsidize the cost of petrol/gasoline and other petroleum products. Subsidies make transport of people and goods cheaper, but discourage fuel efficiency. 

In some countries, the soaring cost of crude oil since 2003 has led to these subsidies being cut, moving inflation from the government debt to the general populace, sometimes resulting in political unrest.

Fuel subsidies are common in oil-rich countries. Venezuela, which has vast oil reserves, maintains a fixed price of Bs.F 0.097 per litre (around US$0.08 per gallon), and has done so since 1998, thus making it the nation with the lowest gasoline and diesel prices in the world. Other countries with subsidized fuel include United States of America, Saudi Arabia,Iran, Egypt, Burma, Malaysia, Kuwait, Bahrain, Trinidad and Tobago, Brunei and Bolivia.

In February 2010, the Iranian government implemented an energy price reform by which the energy subsidies were to be removed in five years; the most important price hike was in gasoline, as the price went up from 100 rials ($0.10 US) to 400 rials ($0.40 US) per litre, with a ration of 100 litres per month for private passenger cars (later reduced to 60 litres per month).

On 26 December 2010, the Bolivian government issued a decree removing subsidies which had fixed petrol/gasoline and diesel prices for the past seven years. Arguing that illegal export (contraband) to neighboring countries was harming the economy, Bolivia eliminated the subsidies and raised gas prices as much as 83%. After widespread labor strikes, the Bolivian government canceled all planned price hikes.

Malaysia

 Malaysia spends US$14 billion subsidising gasoline, diesel and gas each year. Effective 5 June 2008 gasoline prices increased by 40% to RM2.70/litre (US$3.30 a gallon), from RM1.92/litre (US$2.32 a gallon). Diesel prices rose by RM1.00/litre to RM2.58 (US$3.04 per gallon), a 63% increase. It was announced that price increases were planned to bring fuel prices in line with global market cost, suggesting that it may hit US$3.80 per gallon by August. The Malaysian government has also announced a one-off cash rebate of RM625 per year to Malaysian citizens who own cars with an engine capacity of 3,000 cc or less and RM200 tax rebate to cars with an engine capacity of 3,000 cc and above to offset the increased costs. The government introduced a temporary ban on buying fuel within 50 km of the country border, but the ban was suspended following a price increase on 7 June 2008 for petrol of 41% (to MYR2.70 a litre) and for diesel of 63% (to MYR2.58).

On 22 June 2008, the Malaysian government announced plans to set up separate pumps at its border petrol stations to sell fuel to foreigners at market rates so that only locals can benefit from subsidised petrol. The new pumps will target Singaporeans and Thais who make day trips across the border to fill their tanks with cheaper fuel there, although Singapore-registered cars must have their tanks at least ¾ full before they will be permitted to leave Singapore in any case. Petrol stations within 50 km (31 mi) of the country's northern border with Thailand and southern border with Singapore would be affected. Recently, the fuel price has dropped until MYR 2.45 and it has dropped for the second time. A further reduction was made on 1 November 2008. RON97 petrol was reduced from RM2.30 a litre to RM2.15 a litre, RON92 petrol from RM2.20 a litre to RM2.05 a litre and diesel from RM2.20 a litre to RM2.05 a litre. The Government revealed that it had ceased subsidizing petrol as of 1 November 2008 when the price of oil dipped below US$65 per barrel. However subsidies were still being paid for diesel and natural gas.

On 18 November 2008, the Malaysian government made further reductions in the price of gasoline cut pump prices by seven per cent to RM2.00 ringgit per litre and diesel by 15 sen to RM1.90 per litre. The government said that at current prices they were making about 30 sen per litre in sales. Then again on December 3, petrol prices were reduce further. Gasoline prices were reduced 10 sen to RM 1.90 per litre and as for diesel, they were reduced 10 sen to RM 1.80 per litre. On 16 December 2008 the price of RON97 petrol is was reduced further to RM1.80, while RON92 is selling at RM1.70 a litre. The pump price of diesel was reduced to RM1.70 a litre.

From 1 September 2009 however, the price for RON97 increased to RM2.05, while RON92 has been discontinued and replaced with RON95, at a price of RM1.80. On 16 July 2010, petrol prices across the board was raised by 5 sen, which brought the prices of RON95, RON97 and diesel to RM1.85, RM2.10 and RM1.75 per litre respectively. Since then, RON97 floats with government controlled revision reflecting the global crude oil prices. As of 1 August 2010 only Malaysian-registered petrol vehicles may purchase RON95 fuel; foreign-registered vehicles (mainly from Singapore and Thailand) by law can only purchase RON97 (or diesel) at Malaysian service stations.

On 1 April 2011, RON97 increased from RM2.50 to RM2.70. In May 2011, RON97 further increased to RM2.90, another record high for RON97 in Malaysia. A drop of RM0.10 in June 2011 brings it to RM2.80 per litre, the first price reduction since RON97 was floated at market rates.

On 3 September 2013, due to Malaysian economy feels economic downturn, PM Najib decided to increase the price for RON97 from RM2.70 to RM2.85, RON 95 from RM1.90 to RM2.10 and diesel from RM1.80 to RM2.00. 

source: wikipedia

Fuel Prices In United States

Fuel Prices In United States

US petroleum consumption reached an estimated 18.87 million barrels per day (3,000,000 m³/d) in 2011, and is expected to increase to 18.96 million barrels per day (3,014,000 m³/d) per day in 2012. 

Drivers in the United States travelled 500,000 miles (800,000 km) per day in 2011 and were expected to travel 8.158 billion miles 

(1.3129×10¹⁰ km) in 2012. This equates to an average of 33 miles (53 km) per vehicle per day. 

On average, US drivers consume 1.49 US gallons (5.6 L) of gasoline per day, or about 10.44 US gallons (39.5 L) per week. As of March 2013, the average price for 87 octane gasoline was $3.22 a US gallon (85¢/L).

"One cited spending $47,000 in 2005 on gas and oil for a fleet of 16 trucks. In 2006, that number was up to $62,000 and then again up to $70,000 in 2007. This year they are on track to spend $88,000 after budgeting only $66,000. Rising gas prices will siphon $22,000 off their bottom line unless they can find a way to pass that increase along." 

 In 2008 a report by Cambridge Energy Research Associates stated that 2007 had been the year of peak gasoline usage in the United States, and that record energy prices would cause an "enduring shift" in energy consumption practices. According to the report, in April fuel consumption had been lower than a year before for the sixth straight month, suggesting 2008 would be the first year US usage declined in 17 years. The total annual distance driven in the US began declining in 2006.

The average price per US gallon in 2012 (as of 31 December 2012) was $3.618 (96¢/L), the highest ever for a year. As of 31 December 2012, the average price of gasoline was $3.298/gal (87¢/L), with New York at $3.70/gal (98¢/L) for the highest in the US, and Colorado at $2.987/gal (79¢/L) for the lowest.

Finished motor gasoline amounts to 44% of the total US consumption of petroleum products. This corresponds to 18.5 exajoules per year. As of 2012 the cost of crude oil accounted for 62% of the cost of a gallon of gasoline in the United State while refining accounted for just 12%. Taxes and distribution/marketing accounted for 12% and 14% respectively.

After Hurricane Katrina and Hurricane Rita, gas prices started rising. They became record high levels. In terms of the aggregate economy, increases in crude oil prices significantly predict the growth of real gross domestic product (GDP), but increases in natural gas prices do not.

All the damages from the hurricanes ran up gas prices. By 30 August, a day after Katrina’s landfall, prices in the spot market, which typically include a premium above the wellhead price, had surged pass $11 per gigajoule ($12 per million British thermal units), and by 22 September 2005, the day before Rita’s landfall, the spot price had risen to $14/GJ ($15 per million BTU). 

Crude oil

Crude oil is the greatest contributing factor when it comes to the price of gasoline. This includes the resources it takes for exploration, to remove it from the ground, and transport it. Between 2004 and 2008, there was an increase in fuel costs due in large part to a worldwide increase in demand for crude oil. Prices leapt from 35 to $140 per barrel ($220 to $880/m³), causing a corresponding increase in gas prices. On the supply side, OPEC (or the Organization of the Petroleum Exporting Countries) has a great deal to do with the price of gasoline, both in the United States and around the world. The speculation of oil commodities can also affect the gasoline market.

Taxes

Taxes are the next biggest contributor to gasoline prices at around 12%. In the United States, both state and federal taxes apply to gasoline. In addition other taxes may be placed on gas including applicable state sales taxes, gross receipts taxes, oil inspection fees, underground storage tank fees and other miscellaneous environmental fees.

Marketing and distribution

Distribution and marketing makes up the remaining 5%. The price of transporting crude oil to a refinery then gasoline to a point of distribution is passed on to the consumer. In addition the price to market the fuel brand is passed on.

Other factors

Aside from this breakdown, many other factors affect gasoline prices. Extreme weather, war or natural disaster in areas where oil is produced can also in turn raise the price of a gallon of gasoline. Legislation by several states for cleaner burning fuel also affects certain areas' prices of gasoline. Furthermore, demand directly affects the price of gasoline. For example, when more people are on the road, typically in the summer months or during holidays, the price will increase.

Up to date prices for gasoline (unleaded) are available at http://www.mytravelcost.com/petrol-prices/

source from wikipedia