In announcing the price decrease for petrol & diesel, the government mentioned that it was determined by taking into account the actual price from August 1 to 21 and the 30 sen per litre subsidy borne by the government while the subsidy for diesel, based on the new price, was 50 sen a litre.
I have my doubts, so let us do some calculation :
1st, lets check the price for crude oil. From August 1 to 19, the price for WTI Cushing Spot was between US$112.92 and US$125.03 per barrel with an average of US$116.80 per barrel.
1 crude oil barrel is equals to 159 liter, so :
US$116.80 / 159 = US$0.73 per liter
The exchange rate is currently at RM3.34 per US$1.00, so :
US$0.73 x 3.34 = RM2.42 per liter
Add RM0.32 per liter for taxes & other costs :
RM2.42 + RM0.32 = RM2.74 per liter
Minus RM0.30 per liter for fuel subsidy :
RM2.74 – RM0.30 = RM2.44 per liter
Voila ! So we should be paying only RM2.44 per liter for our petrol.