Monday 7 April 2008

The Petrol Price Pantomime!

More talking cock from the Federal Government

It has been reported that the subsidy on petrol may be revised with the bulk going to the regular type so that prices will be kept down for most motorists.

Under the plan, the existing classes of petrol at the pump — Octane 92 and Octane 97, commonly referred to as Research Octane Number (RON) 92 and RON 97 — will be abolished and replaced by Octane 95 and Octane 99.

Octane 92 is used mainly by motorcycles and older cars whilst most other vehicles normally use Octane 97, there is also a more expensive higher octane petrol currently being sold by Shell

When Domestic Trade and Consumer Affairs Minister Shahrir Samad, announced this proposed peculiar petrol price formula, he said Octane 95 could be used in most vehicles and would be the fuel of choice for low and middle income earners.

The government would also introduce Octane 99, a premium fuel that costs more than Octane 95 or 97, that is usually used in performance luxury cars and Sports Utility Vehicles (SUVs).

What utter rubbish he is talking, Shell has sold the higher octane petrol for ages, and many petrol stations no longer sell the 'Regular' RON 92 petrol

Under the proposed system, Shahrir said, subsidies would be mainly used to keep the price of Octane 95 low, whilst Octane 99 will still be subsidised but to a lower extent.

"The goal is to have subsidies targeted and more focused at those who need it, such as the lower- and middle-income group, and giving a choice to the rich on what petrol they want to fill in their tanks,"
"We are subsidising a form of petrol that is of a high quality, but I was informed by Proton that a majority of cars can use Octane 95.”
"The Octane 97 that we use benefits luxury cars."
Shahrir said.

The new system sounds like yet more bullshit, yet another example of pathetic pantomime politics from BN.

The proposal is apparently being considered by the government following a meeting of the Cabinet.

Shahrir stated that the government was expected to save more by allocating subsidy to a single type of fuel, Octane 95, as opposed to subsidising two types of fuels, Octane 92 and Octane 97.

I wonder what the oil companies have to say about this?

It seems totally illogical to me, but then again, I am just a simple sailor!!!

On thing which is certain, the consumers will be screwed yet again

+ Esso Mobil, BHP, Petronas, Caltex & others too

The price of petrol is already too high in Malaysia, see my post about this HERE

Homines libenter quod volunt credunt

- Men believe what they want to.

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