Fuel Prices Malaysia

Part of: GIZ International Fuel Price database
Also see: Malaysia Energy Situation

Fuel Pricing Policies

Local Currency:	MYR
Exchange Rate:	3.13 (2010/11/17)
Last Update:	2011/05/01

To stabilize fuel prices, the Malaysian government introduced a fuel pricing mechanism in 1983. According to this pricing formula, the pump price may be subject to subsidies of a maximum of MYR 0.5862 for petrol and MYR 0.1964 for diesel. In times of low actual costs, however, there might also be a taxation within the same ranges. The idea was some sort of a slate calculation, so that prices can remain constant over longer periods. However, during the last years, the government continued to subsidize gasoline and diesel. As of May 2011 (see 2.), the subsidies reach almost the legal maximum for 95 octance gasoline. (Thus, the price for 95 octance gasoline is anticipated to rise again in June 2011. Otherwise, the government stated, an additional need of 4 Billion Ringgit arises from the (higher) subsidies, →see App. A4).

In July 2010, the government cancelled subsidies for premium gasoline (97 octane). Since then, the 97-octane price is more volatile, directly following the international market price. Also, the government stated in July 2011, that following the so-called „gradual subsidy rationalisation programme“, fuel subsidies have to be reduced and finally cancelled on the long term in order to save national budgets (→see App. A3).

The Domestic Trade Division (part of the Ministry of Domestic Trade and Consumer Affairs) supervises fuel pricing in Malaysia. The ministries website (http://www.kpdnkk.gov.my/, in Malaysian language) offers some information regarding the downstream fuel sector (e.g. information for market actors) and legal information. However, information on (historic and current) fuel prices and on the pricing mechanism could not be found.

Fuel Prices and Trends

	Gasoline 95 Octane	Diesel
in USD*
in Local Currency

* benchmark lines: green=US price; grey=price in Spain; red=price of Crude Oil

Fuel Price Composition

Price composition for one litre of Gasoline 95 Octane as of 2011/05/15.

As for an assumed MOPS95 market price of 74 US-Cents/litre and a retail pump price of 1.90 MYR

(*Alpha works as a „purchasing buffer“ for the oil companies, i.e. a market price of 0.05MYR over the MOPS price is defined as the calculatory purchasing price.)

(**Can (theoretically) be a fuel tax in times of low purchase prices and costs.)

Source: http://paultan.org/ (following a publication of the Domestic Trade and Consumer Affairs Ministry, Domestic Trade Division in summer 2009).

At a Glance

Regulation-Price-Matrix	Transparency of Price Composition Transparency of Pricing Mechanism / Monitoring

Sources to the Public

Type of Information	Web-Link / Source
Other Information	http://paultan.org/2009/02/15/how-fuel-prices-are-calculated-in-malaysia/ (A5)
Other Information	http://www.kpdnkk.gov.my/
Other Information	http://paultan.org/2011/05/04/ron97-fuel-rm2-90-per-liter-as-of-5th-may-2011/ (A1)
Other Information	http://www.fastmotoring.com/index.php/2010/07/fuel-price-ron95-rm1-85-ron-97-no-subsidise/ (A3)
Other Information	http://www.themalaysianinsider.com/malaysia/article/extra-rm4b-in-subsidies-if-petrol-price-not-adjusted-says-najib (A4)
Pump prices and margins	http://blog.galvintan.com/malaysian-fuel-price-history/ (Historic prices 2000 - 2012)

Contact

Please find more information on GIZ International Fuel Price Database and http://www.giz.de/fuelprices

This is a living document. If you have any comments or suggestions, please feel free to contact us: Armin.Wagner@giz.de

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