Why is the oil price in Malaysia is
high?
Hi,
I’m just a boy who wondering why the oil price in Malaysia is high. I’m a Business student in a private
university somewhere in Subang Jaya. I’m here to debate or discuss about the
oil price in our beloved country Malaysia. Our prime minister Datuk Seri Najib
Tun Razak said that our oil price is way cheaper than Indonesia, Singapore, and
Thailand. From my point of view, yes our oil price is cheaper than those
country that Datuk Seri Najib said but the thing is, he’s comparing the oil
price with those country that import oil and gas whereas Malaysia is a country
that PRODUCE and EXPORT oil and gas.
The
Malaysian government should compare our oil price with country such as Qatar,
Oman, Saudi Arabia, Venezuela and others country that also produce oil. In
2009, Malaysia is the second largest exported of LNG in the world after Qatar
exporting over 1 tcf of LNG, which accounted for 12 percent of total LNG
exports Japan, South Korea, and Taiwan were the primary purchases. The current
oil price in Malaysia in U.S dollar is US$0.543 per litter. Maybe to all of you
it is quite cheap but it is not. The current oil price in Saudi Arabia is
US$0.127 and Venezuela US$0.047 per litter.
According
to http://www.malaysiakini.com/letters/47888
it said that we Malaysian paying less for petrol.
Yes! If you compare them to Japan , Hong Kong, United State, Canada and so on. Now
the price per gallon in Malaysia is US$2 meanwhile in Saudi US$0.61, Iran
US$1.44 and Venezuela US$0.08 per gal gallon
First, compared to those middle eastern countries, they have more oil than Malaysia. It is expected that oil in Malaysia will run out (sooner than the countries you mentioned). Check the "proved oil reserves of the world" and you will find that compared to the countries like Saudi Arabia, Venezuela and other countries, Malaysia's oil reserves is so very little. If we start selling oil for cheap as if we got it in abundance, we will just speed up the depletion of that resource. Thus making it no longer viable as an income (through export) for Malaysia.
ReplyDeleteSecond, if im not mistaken, all the oil that are produced are exported mainly because the quality is of high standard thus selling it abroad would yield higher profit. The oil malaysians use are imports from abroad which makes it abit pricey. But this is what ive heard before and i have no proof to back this up.
Okay let put up this way. Like you were saying Malaysian oil is exported out of the country because it is high quality. So how bout the Malaysian government sell it with a high price and use the profit to cover a little bit for the imported oil. its a win win situation. Petronas got profits and the Rakyat pay less for petrol consumption
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