Wednesday, October 29, 2008

Petrol price has a minimum!

I read The Star news today to find out whether there was going to be any reduction on petrol prices, seeing that it's almost the end of the month now. What I was greeted with, was a moron by the name of Shahrir Abdul Samad saying that the petrol price will have a minimum of RM1.92/litre, regardless of global oil price. According to him, this would bring some stability to the retail price of petrol. I do not understand what he meant by this? Is there anyone complaining on the recent reduction in oil prices? If anything, we as the consumers don't mind this kind of instability at all, if the prices keep plummeting.

Also, on the point of petrol station owners' losses, I think this is just an excuse. Really, if proper planning is being done, I'm sure this could be very well-managed. There was this petrol dealer quoting in the same article:

Ahmad Sarpur, a dealer in Johor, said dealers could lose between RM13,000 and RM25,000 each time petrol is reduced by 15 sen per litre.

“This is because there is a minimum order quantity of 21,000 litres that we must pay for immediately. There is no credit,” he said.



I wonder how he did his calculation? Let's say he orders a minimum quantity of 21,000 litres, and with a reduction of 15 sen per litre, that would come up to 21,000 x 0.15 = RM3,150. Where, pray tell, did the figure of RM13,000 to RM25,000 come about? And I haven't even included the 12 sen margin allocated to all the petrol dealers. If that is taken into account, the losses would only be 3 sen per litre, translating to RM630, assuming minimum quantity is ordered. Also, another assumption is that NONE of the petrol is sold from the morning when the dealers get the petrol delivery, until the night when announcements are usually made.

Now, do you think the excuse provided by the certain moron is actually bullshit? If the petrol dealers really want to minimize losses, the government could either:

1) Provide the dealers 2-3 days notice in advance, so that the dealers could buy the minimum amount for that few days. Or better still, the petrol dealers should be smart enough to know that petrol prices will usually be adjusted at the end of the month, and should only stock up the minimum quantity by then.

2) The government can always reduce just 12 sen per adjustment, but with NO minimum amount of RM1.92/litre. If they reduce 12 sen each time, the petrol dealers are theoretically not suffering from losses.

Finally, the same moron also mentioned selling the petrol at the minimum of RM1.92/litre would enable the government to reduce its subsidy on petrol if the global price fell further. So this is the main reason of setting the minimum? So that the government could SAVE and the rakyat should pay the so-called 'subsidy' instead? This is such a stupid excuse! In the first place, the subsidy amount has already reduced to a meagre value, and if the price reduces, I don't think the subsidy should be reduced! That was what was promised to us when the petrol price was increasing. Now that it's on the decreasing trend, they want to consider pulling back the subsidy? Is that fairness?

I am appalled by how and what the moron thinks. How could he not think on behalf of the consumer? And that, coming from a Domestic Trade and Consumer Affairs Minister, who doesn't really take the consumers' welfare into consideration.

I don't agree, why must the government put a minimum on the petrol price if the global oil prices keep plunging? Does it make sense to the consumers if say, one day the petrol price retails at RM1.80/litre and we STILL have to pay RM1.92/litre?


9 comments:

zewt said...

they will forever be treating us as though we dunno how to think... probably that's why they are trying to keep a big bunch of the population stupid by downgrading the quality of education.

this is a legacy of those who refuse to vote and those who vote for 'stability'.

chiaoju said...

Couldn't agree more with zewt. I honestly think that the government thinks that we are still living in the 40s or 50s.

The society is DIFFERENT. We have EVOLVED. Do they really think we are just this bunch of idiots walking on the face of the Earth?

*sigh*. As much as I love Malaysia, and am grateful to be a Malaysian, sometimes, the government annoys the crap out of me. I think I have a love-hate relationship with the country.

kew said...

The government thinks we are idiots....

Bamboo said...

Well, to be fair, I don't see anyone complaining when he said the petrol should not go over RM2.70 :P. Anyway, I supposed the main character in your article was calculating based on the assumption that the orders made were not of minimum order mah... so, maybe he calculated based on an average order made by petrol station owner loh. Besides, if they really set a minimum price for petrol and petrol really did plunge below that, the price difference can be used for other stuff mah. :P

love2bug said...

this is so stupid..

its ok to raise up up in one shot..
its not ok to go down straight but must by bit by bit so they can protect the petrol operator.
so who are us the consumer??!!

sigh!!
why.. why??!!

iamthewitch said...

zewt: Yes! The level of education now is appalling. I am speechless!

chiaoju: I like your love-hate relationship. :)

kew: Exactly.

bamboo: HELLO bamboo?! Are you a legitimate consumer? I don't see why you're AGREEING with the government! Do you still remember how it got from RM1.92 to RM2.70? In ONE FREAKING night! And NO, I don't think I'm being unfair now by complaining about the minimum. You really believe the maximum will be capped at RM2.70? They only dare to say that because the price is on the decreasing trend now. You just wait until it bounces back up again and there will be NO limit on the upper end! By the time the price increases too high, they'll give excuses saying that the government cannot afford to give so much subsidy. You just WAIT. They only limit on the lower end, so stupid. "Besides, if they really set a minimum price for petrol and petrol really did plunge below that, the price difference can be used for other stuff mah" What 'other stuff'? This doesn't make sense bamboo. The 'extra' money that the government makes always goes back to the pockets! Not to the consumers. Reading your reply annoys the crap out of me... *inhale*exhale*

love2bug: I agree with you! Everything has to be done to THEIR advantage. They never take the rakyat into consideration, thinking we're some idiots.

iamthewitch said...

bamboo: Also, if the petrol owner counts based on average order, isn't that cheating? As I said, they should be smart enough to realize that the government will adjust the petrol prices by end of the month and shouldn't order their 'average' volume to prevent losses. I tell you, they are just trying to make their losses seem BIG, by lying to us and treating us like idiots.

iamdoryfish said...

Yeah, the government never really keep their promises,or maybe i should say, one person in particular. Our failed flip flop leader!! I don't think the maximum will be capped at rm2.70 if the global oil price shoots up.

cupnsaucer said...

haiya, ntg is fair in this world, so pointless to argue. This is nothing, there are other even cruel things in life.

Cheers !