Sunday, January 21, 2007

Understand Petrol Price Mechanism

Semalam aku berjalan hampir 510km dalam masa satu hari. Pergi balik ke KL untuk menguruskan pembelian barang-barang penting. Masa mengisi minyak, aku teringat tentang satu e-mel yang aku terima dari bekas orang besar di salah satu syarikat minyak gergasi dunia berkenaan dengan mekanisme harga minyak di Malaysia.

Price of petrol in Malaysia is controlled by a mechanism known in the industry as APM (Authomatic Price Mechanism:
The formula is something like below: (At least this was the formula when I left the industry 4 years ago)
For example : Price Build Up for 97R Premium:
Cost Component, how the subsidy is calculated.
Theorotical No (RM/Lit)
1. Product Cost 80.61
2. Operating Cost 9.54
3. Dealers Margin 2.97
4. Oil Company Margin 1.75
5. Govn Duty 19.64
6. Duty exemption (19.64)
7. Govn Subsidy 25.77

Total Cost B/Up 70.10

8. Pump Price 70.10

Note:
1. Product cost is based on average daily spot prices in Singapore, past two months (lag)
2. Operating cost is set by MDTCA based on annual submission by oil companies, standard for all.
3. Dealers Margin is set by MDTCA and fixed, until revised, normally 3-5 years.......
4. Oil Company margin, as no 3.
5. Goven duty is applicable if the product cost fall below certain threshold, i.e duty mode.
6. same as 5. (If product cost is above this threshold value, 5 & 6 , offset each other.
7. Subsidy varies monthly based on product cost fluctutaion, to keep everthing else constant.
8. Pump price fixed, untl revised............

So, directionally, crude oil goes up, product cosst goes up, subsidy goes up, if goven decide to keep pump price the same. Bila tak tahan, up pump price le. Very simple mechanism.

You can also notice that doing oil business is very ok in malaayssia, as your margin is guaranteed by theis mechanism. That's why Caltex, BP can survive by 100% importing their product from Spore!!becoz product cost under this mechanism is based on S'pore pricing.

Memandangkan harga contoh yang diberi adalah nombor-nombor contoh sahaja, jadi aku cuba mencari harga sebenar pasaran di Malaysia. Dalam pencarian tersebut, aku terjumpa pula penjelasan di laman web NEAC (National Economic Action Council) yang boleh diakses di
http://www.neac.gov.my/index.php?ch=62&pg=152&ac=1348.

Secara ringkasnya, begini adalah pecahan harga berdasarkan harga minyak mentah di dunia pada 31 Julai 2005 yang lalu:


Jadi pada mereka-meraka yang masih mengganggap harga petrol di Malaysia masih terlalu tinggi, fikir-fikirkan balik. Menurut perkiraan kasar aku berdasarkah formula di atas dan harga terkini minyak mentah di dunia, aku menjangkakan kerajaan masih lagi mensubsidi sekitar 14sen ke 20sen seliter. Apa yang aku ingin diketengahkan di sini hanyalah dua. Satu, adakah bilamana kerajaan memberi subsidi petrol, semua rakyat menerima faedahnya atau golongan-golongan tertentu sahaja? Kedua, apakah kebanyakan orang-orang politik negara kita ini tidak mampu berfikir "di luar kotak" hingga asyik berkata tentang "harga petrol masih rendah berbanding negara-negara Asean lain" dan "jimatkan penggunaan petrol seperti dengan menaiki basikal ke tempat kerja atau naik LRT"?

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