Estimate cost of crude oil purchase , refining and Pump
price. I used the Overseas production cost data and it is more expensive in
terms of labour cost than the refining cost in Malaysia.
are paying their salaries. Do not take things
for granted and by courteous will dealing with the general public. If the General
public stops buying gasoline or buys less gasoline the civil service salary
will be in arrears. That is why when less money in the treasury , the
government raises gasoline prices to cover the shortfall and the civil servants
get paid.
Conversion 1 Gal to 4.546 liters
1.
Barrel
of crude oil has 42 US gallons and costs about $56 (RM 246.40).
2.
The
cost per gallon is USD1.33(RM 5.85 )
3.
Tax totals 0%, the non-processing cost is
about USD 1.33 ( RM 5.85) per Gallon
4.
People
(workers, management, engineers, etc.) add about 20 cents cost to each gallon
5.
The distribution and sales probably add another
25 or 30 cents per gallon.
6.
Now
the total is about USD 1.63 ( RM 7.17 ) per Gallon – cost 1 Liter RM 1.58
7.
If the gasoline sells for USD 2.37 – RM 10.46 (
RON 95 – RM 2.30 RON 97 – RM 2.60 Diesel RM 2.15 - Average RM 2.35 Including 6% GST ) - ( The processing costs (capital to build a
refinery, the energy to fire furnaces and create high pressure steam, waste
treatment and disposal) cost cannot be greater than about 18 to 20 cents per
gallon. In my opinion, this number may be a little high, but less than 8 cents
per gallon is unrealistic and 18 or 20 cents is about right
8.
Cost to
produce and sell USD 1.83 ( RM 8.05 )
9.
Prices
at Pump USD 2.37 – 10.46 including GST 6% ( Do not know of government taxes included
in the production and selling including GST 6% )
10.
Profit
USD 0.54 per gallon RM 2.38 per – Profit per liter RM 0.53
11.
Total
Fuel consumption 745,000 US Barrels per day = 142,244,340 Liters per day ( 2014
figures ) x Profit RM 0.53 cents = RM 75,389,500 per day x 365 days = RM 27,517,167,573
Profit per day ( Government hidden revenue as the Price to produce Gasoline RM
8.05 per liter including PETRONAS/ Shell , Exxon etc. cost and profits ) This
is 2014 figures and if Gasoline consumption have increase by 20% to 2016 than additional
of RM 5,503,433,514 in profits = estimate 2016 Profits RM 33,020,601,088
12.
1 cent
increase in Gasoline prices translates into RM 623,030,209 yearly or daily RM 1,706,932 Forecast
Price increase of RM.20 per Liter for Diesel , RON 95 and RON 97= Translates
into RM 34,138,640 daily and Yearly RM 12,460,603,600
13.
The
profits for the Petroleum derivatives from processing of crude oil –Engine oil,
Plastics Nylon, Chemicals etc. and all the production and sale of LPG not
included.
14.
Safe bet
Government makes a total of RM 60 to 70 Billion Ringgits from indirect taxes
and profits. The price at the pump is set by the government and this is taken
into calculation in the production and sale price of gasoline from the major
producers and all extra pricing is government revenue. The government is the
wholesaler as the producers sell the Gasoline at a set price and then the
government sets another price and takes the profits
World.bymap.org/OilConsumption
http://oilindependents.org/gasoline-prices-oil-production-not-your-5-second-sound-bite-2/
http://www.iea.org/publications/freepublications/publication/FeaturedInsights_AlternativeFuel_FINAL.pdf
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