Malaysian petrol price

Yesterday I read some comments in the newspapers complaining that the government was very slow in cutting the petrol and diesel prices and the cut were only between 10-15sen at a time. The low cut was mainly to avoid petrol stations operators from suffering huge losses due to expensive stock purchase prior to the cut. The BN is very caring government but only to the petrol station operators because the bulk of these operators are politicians, relatives, proxies and cronies of politicians.

When the government hike the petrol by 40%, they never consider the implication on inflation, costs of other consumer goods, cost of transportation, basically nobody is thinking about the general public welfare. But, the petrol operators made huge sum of profit when the fuel prices were increased drastically. By increasing the petrol from RM1.92/litre to RM2.70 per litre, the petrol station operator made a profit of at least 78sen.

Let say, as at 12 midnight on the eve of the price hike, a petrol station had a stock of 10,000 litres bought at RM1.80/litre or RM18,000. By midnight, they sell the petrol at RM2.70/litre, minus operation cost, they made RM26,000 from selling the stock. A gain of RM8,000 was made. Therefore these people had made a lot of money from the price hike, but when the government cut the price, the priority is on the petrol operators' welfare.