Rebate for petrol. What rebate?

The recent petrol-hike affects everybody. Those living in Bangsar or those living in the slumps. Those driving a 3-litre Cefiro or a 850 cc Kancil. Those riding kapcai or Harleys. In short, you will be affected - whether you are rich or poor. You won’t be spared.

I'm OK with the price hike. This is a laisse fairre market. The prices are dictated by the supply and demand. And that's called the market forces. Everybody must pay for something at the market price. If the market price is RM3.00 per litre, so be it. We have to pay RM3.00 per litre. So why the fuss?

However, what irks me is not the price hike, but the manner in which the actual petrol price is manipulated and how the public is made blinded with the RM625.00 rebate? What rebate? That's is our money - yours and mine. It's ours and rightfully should be taken in the first place.

Let's go back to the basic. In economy, dollar must be compared to dollar as apple to apple. Not comparing bananas in M'sia are much cheaper than bananas in Japan. Of course-lah, even primary school children know that, as Japan is not a bananas producing country. Comparing bananas in Malaysian to bananas in Thailand make more sense.

To show that ours is still cheap, they blinded us with the prices in Thailand , Singapore and Indonesia . Yes, it's RM3.90/liter in Thailand. However cars cost as much as RM15,000 cheaper in Thailand, one in a lifetime driving license and roadtax. And the six-lane highway from Hadyai to Bangkok is toll free.

Then they compared with Singapore. It's RM5.20 (or $2.20). Mind you, in Singapore it's $2.20, not RM5.20. You can't quote in RM because they are earning in Sing Dollars or can you fill up petrol in Singapore by paying in RM? What an insult of my intelligence as Singapore is not even a crude oil exporter.

Then for Indonesia we might say is cheaper there at RM2.07/liter but look at their income per capita and compare that with Malaysia, Thailand, Singapore and Brunei.

Again, what rebate? If they're talking about the petrol prices of the oil producing countries, then they would realize what it means by "rebate" or "subsidy".

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
IranRM0.35/litre
Nigeria RM0.32/litre
Turkmenistan RM0.25/litre
Venezuela RM0.16/litre

Where is the subsidy or what rebate are they shouting about?

At international market, the price of crude oil is USD 130/barrel. 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 oil.

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.

Financially,
Malaysia sell 2 barrel crude oil @ USD 130/barrel = USD 260 = RM 858 then,
Malaysia will buy back fuel @ USD 134/barrel = RM 442/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?

Are they saying that we stupid Malaysians are pre-paying for the bitumen, kerosene, and natural gases and so many more when we fill up our tanks; and again pay for the bitumen or tar used in the form of toadtax etc.

And worst still, when you board an airplane, you still have to pay fuel surcharge by airlines. Where is the subsidy or rebate?

We, stupid Malaysians are being deceived by the propoganda and agendas of the politicians and the controls they have over the press.

Another sore point is the determination of who get and who don't get the petrol rebate. Which stupid idiot economist equates rebates given based on the size of the cars or motorbikes, irregardless of its age. Meaning those driving cars less than 2000cc are poor; and are entitled for the rebate. Those driving cars more than 2000cc are rich; and therefore not entitled for the rebate. What an absurd equation.

In my office, my boss (who is the owner and who is 1,000,000 times or more richer that I am) drives in a brand new C class Mercedes; and he gets a rebate of RM625 because he is poor; and I, who is 1,000,000 times poorer that him) but drives an 11-year old 2.2. Toyota Camry didn't qualify for the rebate just because I am "rich".

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! Here, who gets the most benefits of the so-called "rebate"?

Wow!! what kind of economists we are keeping in Malaysia?

I really feel sorry for the short-sightedness of the decision-makers. And sorry for fellow Malaysians for electing these short-sightedness people to be the leaders of the nation.