Wednesday, September 3, 2008

Crude Oil Slump!

I do not know how they compute pump prices based on crude oil price but one thing I know our government will do.... is to make these kind of remarks...

Pump prices to stay until end of the month.

Likewise the same statement was made last month but our dear PM relented and announced a pitiful 15sen reduction in pump prices from RM2.70 per liter to RM2.55 per liter on 21st Aug 2008 just a few days short of polling date for the Permatang Pauh by-election.

Yesterday, when news of Hurricane Gustav blew past and missed all the oil wells in the Gulf of Mexico, Nymex slump to about USD105 per barrel. It settled at about USD109 per barrel. When the announcement of reduction was made it was hovering at about USD115 per barrel but it spiked briefly to USD121 per barrel albeit just for one day. Hold your horses for a big reduction even at end of next month guys.... as USD is staging a strong rally and our RM has slumped against all currencies, the USD included... more "impressively" is how it fared against the Renminbi. Sigh... we are getting poorer by the day!

Now, back to the pump prices... going by the logic if crude stays at USD110 per barrel, we should be "accorded" another 15sen reduction? Pittance if you ask me...

So, with no more by-elections coming, I think one can safely bet, if there is any reduction in pump prices at all, it will be a couple of days before Raya.... they will have to ensure the masses balik kampung on a cheaper tank... otherwise, they can expect another 10% swing in popularity the other way round leaving them with probably 20% of the populace behind them....

3 comments:

cleffairy said...

"I hereby declare that if there's no frog jumping around by 16th Sept 2008, there will be no oil price reduction, so you citizens can bitch around and dream on, I don't care"

Quoted from Cleffairy, 6th PM of Malaysia.

Pete said...

Prices of others stuff did not come down although oil price already down. These people taking advantage.

Malaysian Joe said...

Clef... put it this way, if he does not reduce it b4 Raya rush... there won't be much left for him... as it is he has scraps...

Pete, yeah... my sentiments really.. damage was already done... we cannot expect the hawkers to reduce their price even though the raw materials may go down. Point in question is, a bowl of white rice out in the market right now.... at some places it was RM1.50 at the height of high prices.. its still RM1.50 today.