mamakk!!!

Current price for a NYMEX barrel of oil = US$59.90, as of 8.00 am this morning

1 barrel = 158.984 litres.

Price per litre sold in Malaysia = RM 1.92

Let’s see this….

Conversion

US$59.90 -> Ringgit

59.90 *4 = RM 239.60 per barrel

So the price of crude oil per liter is:

158.984 litres / RM 239.60 = RM 0.66 cents per litre

….Am I calculating this right?

A litre of crude oil is actually 66 Malaysian cents? What exactly is the subsidized amount? Or are we all swallowing the bullshit of petrol companies and our government?

Why do I think that most of this is profit….?

Lazy to sign up to Vox to comment, so I might as well do it here since I can be anonymous… =P

Blogger’s calculations are completely wrong since he made a HUGE mistake in his assumption.

Crude Oil is NOT the fuel you use for your car! Also, there were some parts of the calculations that were wrong. Anyway, I’ll attempt to rework it here:

Depending on the configuration and complexity of the refinery, petroleum yields from a barrel of crude oil range from 50 to 65%. Other products are kerosene (jet fuel), home heating oil, propane and butane, certain chemical feed stocks, and petroleum coke. So let’s be optimistic and assume that all the world’s refineries are producing at the higher end of the spectrum i.e. 65% and we exclude all the costs into refining the oil, transporting & distributing it to Malaysia, advertising, salary of workers, franchising costs, etc.

So, 1 barrel of oil = 158.984 litres.

65% of oil to be converted to petroleum = 103.3396 litres

Cost of 1 barrel = US$59.90 = RM239.6 (using a rough conversion of US$1 = RM4 to include transaction costs, etc)

Therefore cost of 1 litre of petroleum = RM239.6 / 103.3396 litres = RM2.32/litre!

And the cost of petroleum in our petrol kiosks in Malaysia = RM 1.92/litre!

Why do I think that most of this is a loss???

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