Try to recall those days where Malaysian people had to queue for half an hour or more in the petrol station. They are taking turns to fill their fuel tanks because of the cheap prices of fuel.
Thanks to the government, the fuel prices are subsidised and the cheap price of fuels brings benefits to road users out there.
However, the question is, where is the good source for you to receive the latest updates on fuel price Malaysia for every month – by weekly?
Don’t worry, you may find them in this article.
Why Fuel Prices Fluctuate?
Before we get to our main points, have you ever wondered why fuel fluctuates so much?
You should be aware that fuel fluctuation occurred for various factors, including both international and national.
Generally, oil costs account for 54% of the price of regular gasoline. The remaining 46% comes from the distribution or marketing, refining and taxes.
Mostly, the gasoline prices fluctuate is affected by crude oil prices and level of gasoline supply, which correspond to gasoline demand.
With high and strong demand for gasoline and petroleum products can actually place intense pressure on the accessible supplies.
Although crude oil prices are stable, gasoline prices may fluctuate due to seasonal changes and in gasoline specifications.
The gasoline specifications and formulations are changing seasonally.
This can be seen when retail gasoline prices have drawn to increase in spring and late summer season especially when people are driving.
However, the prices generally decrease when it comes to the winter season in months.
The requirement of gasoline to be sold in the summer is due to less toxic air pollutants during the warm weather.
Thus, the refiners must replace cheaper, yet more expensive gasoline components with less evaporative – expensive components.
It is also favourably to rise when the available supply of gasoline falls relative to real or expected gasoline demand or consumption.
However, the gasoline prices also may change rapidly if there is interference between crude oil supplies, refinery operations or gasoline pipeline deliveries.
The supply of gasoline is also mainly operated by crude oil supply, refining, imports of gasoline and gasoline stocks.
The stock levels provide a significant impact on gasoline prices, as stocks are shield linking the major short-term supply and demand imbalances.
The imbalances may occur when a region variance from one gasoline formulation to another, while refiners, distributors and marketers adjust supply for the new product.
Nevertheless, when there are refinery or pipeline problems or depletion in imports take place.
This may lead to unexpected lessen in gasoline stocks.
The drop in stocks resulting in the wholesalers to endeavour higher for accessible supply over their worries towards future supplies that may not be adequate.
However, based on the New Straits Times, Federation of Malaysian Consumers Associations chief executive, Datuk Paul Selvaraj stated that fluctuating petrol prices is a part of doing business.
He mentioned the prices were capped after 14th general election and it is government decision to revert to the weekly float mechanism to determine the prices of fuel.
The oscillate prices of fuel is usually affected by the reflection of current global prices which somehow bring more advantages to the consumers.
Petrol Dealers Association of Malaysia disagrees on the government’s implements on Automatic Pricing Mechanism as businesses will suffer more loses.
They even had to sell their older stock at higher prices and resell them at lower prices in following the weekly retail prices for the market.
To simply the several factors affecting the prices of fuel or gasoline will be:
1) Competition among retailers – they are trying to go against each other to match on what the other is charging.
2) Wholesale prices – it depends on what prices the gas stations pay their suppliers, which may vary on a daily basis.
3) Changes in the level of consumer demand and supply – this effect on both gas and oil prices as it typically goes higher in prices when more people are demanding (go travel) and lower in prices when there is lower demands or supply on them.
4) Commodities Traders – when comes to traders of commodities such as gasoline, they buy them at the commodities futures markets which at agreed-upon prices. They are trying to gain profits by selling the contract.
However, if more people are more prone to adopt the usage of electric cars instead of fuel-based cars, there will be less demand from the consumers, fuel and oil suppliers.
Consequently, the petrol, fuel and oil prices in the country would gradually fall but yet, rises in their cost production in order for them to stay in the competitive market too.
Fuel Price Malaysia Update
Usually, people take granted over the fuel prices that go around within the months.
From the latest update for fuel prices stats, it shows that RON47 has declined by 4 sen to RM2.49 per litre, while RON 95 and Diesel remained to be seen with unchanged prices on January 25, 2020.
Here are the updated prices of fuel from 25 January 2020 to 31 January 2020 (week 4):
Additional info: Is RON97 better than RON95?
This weekly fuel pricing mechanism is influenced by the APM (Automated Pricing Mechanism).
For further details, you may read more on the petrol fuel history on fuel price in January 2020 – for weekly updates.
Due to frequent changes in fuel prices weekly, it easier for you to adapt your petrol purchases at its cheap weeks and avoid the expensive weeks.
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