KUALA LUMPUR: Bursa Malaysia plummeted again on Wednesday, with over 900 stocks in the red, as escalating tariff wars between the U.S. and China—two of the world's biggest economies—fueled concerns, stoked recession fears, and wiped out massive amounts in market value. At closing, the FBM KLCI fell for the sixth day, plunging 42.97 points, or 2.98%, to 1,400.59, its lowest in 21 months since July 2023. The market traded within a range of 52.36 points between an intra-day high of 1,438.99 and a low of 1,386.63 during the session. All indices ended the day in negative territory. The benchmark index has lost a whopping 125.93 points, or 8.3%, since the announcement of sweeping tariffs by US President Donald Trump on April 2. In the broader market, selling overwhelmed as 919 stocks plunged, while just 224 managed to rise, pushing market breadth down to a dismal 0.24. About 3.77 billion shares, valued at RM3.8bil, changed hands. Dealers expect market sentiment to remain cauti...
While I was doing some rough calculation, I was wondering whether our Govt really did subsidize us RM0.30 per litre? When the crude oil price was about USD138 per litre, world market price was about USD178. And according to 2nd Finance Minister Tan Sri Nor Mohamed Yakcop (sources http://www.bernama.com/bernama/v3/bm/news_business.php?id=339088), Malaysia should adjust the price to RM3.15 with 30cents subsidy, which means the market price is RM3.45.
Do some simple calculation
3.45/178 = 0.01938
0.01938 * 154.50 = RM3.oo per litre
(USD 154.50 = world market price at the time fuel price increase in Malaysia - 5th June 2008)
Crude oil price on the 5th June 2008 is USD135
USD154.50 - USD 135 = USD 19.40
USD 19.40 = RM 61.89 (if USD exchange rate with RM is 3.19)
RM61.89 / 158.987 = 0.39
(1 barrel = 158.987 Litre
source: http://en.wikipedia.org/wiki/Barrel#Oil_barrel)
RM3 - RM0.39 = Rm2.61
Rm2.70 - RM2.61 - RM0.09
RM3 is the extra that we pay if we go according to world market price, so with Rm2.70, it seems that the government is subsidizing us. But if we look at the crude oil price index, the price is actually RM2.61. I would assume world market price is price with tax, etc. The situation might sounds a little bit confusing, but from here we can see that we at least paying RM0.09 per litre as tax.
My opinion is the government does not subsidize us, but reduce our petrol tax by RM0.30 per litre.
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