Thursday, August 21, 2008

Retail Petrol Price

The global Crude oil price are now trading between USD112 to USD114 per barrel. The basis for the Malaysian retail petrol and diesel prices were calculated when the crude oil price was at USD136 per barrel.

Based on my simple and stupid calculation:

Crude oil price at USD136 = retail petrol price RM2.70,

Therefore, at USD114; 136-114=22; 22/136=16.18%;
2.7-16.18% = 2.7-0.44 = 2.26; price of retail petrol should be RM2.26/litre.

At USD112; 136-112=24; 24/136=17.65%
2.7-17.65% = 2.7-0.48 = 2.22: price of retail petrol should be RM2.22/litre.

The government should reduce the retail petrol and diesel prices immediately before the by-election to gain support, lets not wait until September 1st.

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