Friday, December 12, 2008

Are You Paying More?

Malaysia petrol price has decreased 10 cents to RM 1.90 on 3rd Dec, yet many consumer products still hanging high, why is it so?
At current price of US$44.13 (11th Dec), let's us see how much extra are the Malaysians paying.
Lets do some simple calculation based on crude oil price US$ 44.13/barrel,

US$1 = RM 3.64
1 barrel of crude oil: US$ 44.13 x 3.64 = RM 160.64
1 barrel = 200 litres
Crude oil per litre = RM 160.64/200 = 0.8032
Processing cost/ litre = RM 0.0954
Profit for refinery companies/ litre = RM 0.05
Commission for petrol station operators/ litre = RM 0.1219
Theoritical retail petrol price/ litre = RM 1.07
RM 1.90 - RM 1.07 = RM 0.83
If government tax is barely RM0.83 out of RM1.90= 44% !
We are paying more more more!!

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