Tai Zee Kin

Beyond The Echo Chamber

RON 95 – Calculate the price yourself!

RON 95 went up by 20 sen over 2017 Near Year celebration in Malaysia. Once again, the new RON 95 pricing shocked and suprised the whole nation, and created another round of rage-suprise frenzy in social media and whatsapp.

The feeling was pretty bad indeed. How human nature works, is when you don't mentally prepare for bad things before it happens, the bad feeling that comes along become significantly worse off when it finally hits. However, if one was to thoroughly prepare for all the bad things that are about to come before it happens, the perception becomes relatively bearable when it happens. How bearable will that be, is highly dependable on how prudent you are in overestimating your cost.

So to save yourself from another potential rounds of rage, suprises and heart attacks over fuel prices, It's best that you start picking up on how to calculate RON 95 Prices. you can do so by the end of every month to predict the actual pricing.

NOW, LETS LEARN HOW TO CALCULATE RON 95 PRICE!

1.) Ingredients to the Price/Cost

images

Sardine Bun : You bought a Sardine bun from Giant supermarket this morning, for RM 1.60. The RM 1.60 you paid for include the cost of, among others, Floor, Sugar, Baking Soda, Sardine, Seasoning of Sardine, Onions, Salt, Oil, Preservatives, Margin of the retailer, Transportation cost, Packaging etc. Each of these ingredients and element incurs certain amount of cost. If you want to know the detailed breakdown, you can always go to the manufacturer and retailer, befriend with their accountant, and ask for them to reveal their cost to you. Fortunately you dont have to befriend a retail oil company accountant to know your RON 95 pricing.

RON 95 PetrolYour litre of RON 95 include costing for the actual refined oil (based on MOPS pricing), alpha, operation cost, oil company margin, dealer's margin, and before 1st April 2015, Sales tax (Which is now abolished because RON 95 is not GST-taxable).

2.) How much is the cost of the individual item listed in RON 95 cost breakdown?

First we need to know, that these costings were done according to the Automatic Pricing Mechanism (APM) system implemented on 2nd April 1983. The Regulation implemented then in 1983, listed exactly how much these costings are, to the micro sen. or nano sen (whatever). Scroll down to the bottom of this post and refer to Appendix 1 if you want to read the actual APM document, released in 1983.

But they were all in words. So I made it easy for you by putting a table. Please do not share this table without my explicit permission because in the event I incurred any omission in this table, I do not want it to be mis-interpreted further. So here you go :-

APM calculation.png

So from this Table, you can see, that summing up point 2-5  you get a fixed cost of RM 0.32 (round up from RM 0.3173) per litre. IT MEANS that even if one day when Refined Fuel oil become FREE, you still have to pay RM 0.32 per litre for your RON 95.

IT's like, if one day FLOUR become free, you still have to pay for other cost of your Sardine bread too right? the sugar, packaging, transportation cost, retail shelf place etc.

So what you should have in your mind by now, is RON 95 Price is RM X (MOPS) + RM 0.3173

________________________________________________________________

skip to point 5.) if you want to continue on the calculation. Stay on point 3.) and 4.) to understand a little bit more about MOPS

_________________________________________________________________

3.) MOPS - Means of Platts Singapore  - Why is it called "Platts"? Story Telling Session

in 1909, Mr Warren C. PLATT (1883-1963) published the "National Petroluem News", and lateron in 1923 he published the Newsletter "PLATTS OILGRAM" which was an influential reference for PETROLUEM PRICES.

The Company that Mr Warren C. PLATT formed to publish these Petroluem Prices, was McGraw-Hill, which lateron became S&P Global. the division/department within S&P Global that continues to publish commodities and energy prices, is now known as S&P Global Platts

So, in honour of Mr Platts, the Petroluem price circulation that he used to publish, is now named after him - PLATTS.

4.) What is the different between Pricing from Brent, West Texas, and Means of Platts?

Brent and West Texas are used to indicate CRUDE OIL price.

Means of Platts is used to indicate PREMIUM/REFINED OIL price. in our case, MOPS 95 for RON 95.

Think of Crude Oil, analogically, as your raw Chicken. The price of Raw Chicken, and cooked/treated chicken served on your plate in a restaurant is very different. Brent/WTI is used to measure the raw chicken price, while Means of Platts is used to measure the price of your Chicken Chop/ Chicken Maryland / KFC Spicy Dinner Plate. It is almost certain that the price of the latter is always higher than before.

So when you want to calculate the price of RON 95, which is refined for your car use, use the Means of Platts. They were used by most South East Asia country and also Australia.

However if your car runs on Crude unrefined oil, (maybe you have invented one in your garage. who knows?) then you can proceed to use Brent and WTI to calculate your RON 15 price. or RON 5. or RON8. i don't know the octane number for unrefined/Crude oil, or if there is any Octane number at all.

And if you are want understand how Platts calculate refined oil price, you can read them here.

5.) How do you calculate the MOPS cost in our Malaysia's RON 95?

First, you find out what is the current index of MOPs RON 95. I found one here, and you get something like this :-

mops-2

once you get this graph, you have to start to do some home work. If you remember, our price (APM) is adjusted every month instead of everyday, and the price of the coming month is based on the average index of MOPS Ron 95 (Mogas 95) of the current month. So you will have to get the index quote for the whole month, add them up, divide by 30 to get the "Average" MOPs Price. Whatever number you get for the month, would be your amount RM X for the next month's RON 95.

20170103_144522

mops3

IE, in the above graph, December's Average RON 95 MOGAS MOPS pricing will be the base RM X for January RON 95 price in Malaysia.

So to calculate January RON 95 Pricing, you find out the daily MOPS MOGAS 95 price, add them up and find the average. To ease your trouble, I've done that for you 

mops 4.jpg

Simple Excel work.

Cost per Barrel (USD)

So now, we have the average MOPS RON 95 cost per barrel for December 2016 : USD 66.553

Cost per Litre (MYR)

With that, lets first convert from barrel unit to Litre, which is what we use. The            Conversion ratio is, 1 barrel = 159 Litre . Also for December, the Exchange rate between USD and MYR was about USD 1 to MYR 4.49.

So, 159 litre of December RON 95, would cost you USD 66.553, or RM 298.923

and 1 litre of December RON 95, would cost you RM 1.87938 on MOPS alone.

6.) Adding up RM X (MOPS) and RM 0.32

now, you have managed to get hold of the MOPS pricing for december 2016 (RM 1.87938). So to calculate January 2017's RON 95 retail pricing in Malaysia, add up the MOPS average monthly price (RM 1.87938), and the abovementioned other costing (alpha, dealer/oil company margins, operation cost) of RM 0.32.

the Actual APM Retail price of RON 95 for January 2017 is around 

RM 2.19938 , or RM 2.20

currently, you are paying RM 2.10 for it because the Government "STILL" subsidize it. If not, based on APM, like what is adapted by most countries in the world, you would have to pay RM 2.20 instead.

Conclusion : be kind to your heart, and stop exposing it to shock and rage. Do some calculations and prepare for what is coming the next month ! You can predict the price and impress your friends by your prediction, because they are quite accurately reflected most of the time.

_________________________________________________________________APPENDIX 1

apm-pricing

57 Comments

  1. Hi, how u managed to get MOPS price/graph as above. I hardly to find it thru google. Appreciate if u could share.

  2. Why are we paying full in price for “raw material” being dug from our own shore?

  3. But… Y should it be calculated in USD conversion and y do even convert it.. While u have the oil source in malaysia itself instead of importing in from other countries… This totally doesnt make sense… Even if u MOPS pricing in an event of global index price there is no result for increase pricing for MOPS… And y ist related to increase MYR 0.20 up if the pricing of the oil is 2.20… Nw the question is… Its MYR 2.60 per litre instead of MYR 2.10….. Where is subsidize fuel price nw… N why is there a mini part of the nation is having free fuel to be given for politican… R we helping them to pay while they fill their car for free…. Its ridiculous

  4. Awaiting moderation

    Helpful knowledge. Many thanks!

    viagra efectos viagra in uk reviews
    cheap viagra
    is there any legitimate viagra – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  5. Awaiting moderation

    Nicely put. With thanks!

    twenty-seven tons of viagra prices pill comparison cialis viagra
    generic viagra online
    viagra in stlouis – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  6. Awaiting moderation

    With thanks! A good amount of material!

    can viagra be injected viagra buy uk amsterdam
    generic viagra online
    out of court settlement for viagra – https://genericviagrantx.com

    KeithTaf
    Richardphepe
    Ernestones

  7. Awaiting moderation

    Seriously a lot of beneficial info!

    chocolate viagra for women do you eat before taking viagra
    buy viagra online
    top 10 genuine viagra sites – https://genericviagrantx.com

    KeithTaf
    Richardphepe
    Ernestones

  8. Awaiting moderation

    Many thanks. I value it!

    viagra ethnic discrimination viagra doses how many milligrams
    buy generic viagra
    viva viagra pfizer – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  9. Awaiting moderation

    You actually stated it perfectly!

    what drug is like viagra levitrabuy levitra online viagra
    generic viagra
    under the counter viagra – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  10. Awaiting moderation

    Awesome posts. Thanks a lot!

    find viagra free sites edinburgh pulled generic cheap viagra
    buy viagra
    prescription viagra written – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  11. Awaiting moderation

    Really all kinds of amazing info.

    viagra sterility viagra melt aways
    generic viagra 100mg
    drunk erection viagra – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  12. Awaiting moderation

    Amazing a good deal of wonderful information.

    2buy levitra viagra female viagra review
    buy generic viagra
    avarage age viagra – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  13. Awaiting moderation

    Awesome tips. With thanks.

    cheap dream pharmaceutical viagra viagra free trial
    generic viagra 100mg
    experience with viagra – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  14. Awaiting moderation

    Really all kinds of good info.

    viagra pages edinburgh search find charles viagra soft tabs review
    generic viagra online
    masturbating with viagra – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  15. Awaiting moderation

    Thanks a lot, Helpful stuff.

    cost of viagra in canada using viagra for canines
    viagra generic
    safe to take viagra with phentermine – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  16. Awaiting moderation

    Thanks, Helpful stuff.

    generic viagra overnight shipping christians and viagra
    viagra for women
    effects of viagra on young adults – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  17. Awaiting moderation

    Lovely material, Cheers!

    tramadol and viagra interaction online generic viagra sales
    buy viagra
    videos of viagra boners – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  18. Awaiting moderation

    You definitely made the point!

    testing viagra viagra nz
    generic viagra online
    viagra product strategy – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  19. Awaiting moderation

    Seriously tons of wonderful advice.

    buy viagra online 35008 cheapest generic viagra
    viagra without a doctors prescription
    generic viagra overnigh – https://genericviagrantx.com

    KeithTaf
    Richardphepe
    Ernestones

  20. Awaiting moderation

    Superb info, With thanks.

    effects of taking viagra without ed cheapest prices on generic viagra
    generic viagra
    teen with viagra hardon – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  21. Awaiting moderation

    You actually stated it terrifically!

    viagra natural no risk cheapest prices on viagra
    viagra online
    free sample of viagra without prescription – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  22. Awaiting moderation

    Thanks a lot, A good amount of advice.

    viagra strips viagra online without prescription
    buy viagra online
    what helps viagra work best – https://genericviagrantx.com

    KeithTaf
    Richardphepe
    Ernestones

  23. Awaiting moderation

    Well voiced of course! .

    viagra strippers young men take viagra
    viagra generic
    how dose viagra work – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  24. Awaiting moderation

    Awesome material, Cheers.

    i want to buy viagra viagra test
    buy generic viagra
    diltiazem and viagra – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  25. Awaiting moderation

    You explained that perfectly!

    clonidine interaction with viagra priaprism viagra
    generic viagra 100mg
    generic viagra 25mg – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  26. Awaiting moderation

    Nicely put, Thank you.

    viagra vidam free viagra sample uk
    buy viagra
    free viagra canadian pharmacy – https://genericviagrantx.com

    KeithTaf
    Richardphepe
    Ernestones

  27. Awaiting moderation

    Seriously all kinds of valuable advice.

    viagra prices in usa viagra vidam
    viagra pills
    viagra sucess stories – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  28. Awaiting moderation

    Factor clearly considered!.

    moon flowers viagra viagra online pharmacy
    viagra generic
    viagra paperweight closeout – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  29. Awaiting moderation

    Great forum posts. Thanks a lot.

    viagra f why is levitra costlier than viagra
    viagra without a doctors prescription
    china viagra – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  30. Awaiting moderation

    Nicely put, Thanks!

    female viagra lotion viagra canine perscription
    generic viagra 100mg
    suppliers of viagra – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  31. Awaiting moderation

    Cheers. A lot of advice!

    viagra target market men age buy cialis viagra
    viagra without a doctor prescription
    does viagra help with premature ejaculation – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  32. Awaiting moderation

    Appreciate it, A lot of tips.

    cheap viagra in india viagra online free shipping
    buy generic viagra
    drink female viagra – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  33. Awaiting moderation

    Nicely put. Thank you!

    viagra permanent side effects viagra and niacin
    buy viagra online
    pharmacy silagra brand name viagra cumwithuscom – https://genericviagrantx.com

    KeithTaf
    Richardphepe
    Ernestones

  34. Awaiting moderation

    Wow quite a lot of excellent facts.

    viagra enlarged heart phizer viagra copd trial
    viagra without a doctor prescription
    viagra cialis herbal samples – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  35. Awaiting moderation

    With thanks. Numerous data!

    viagra purchase uk benign prostatic hyperplasia and viagra
    buy generic viagra
    good screw with viagra href – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  36. Awaiting moderation

    You actually expressed this adequately!

    mac email spam viagra male enhancement online viagra scams
    viagra 100mg
    free natural viagra – https://genericviagrantx.com

    KeithTaf
    Richardphepe
    Ernestones

  37. Awaiting moderation

    Kudos! A lot of content.

    new zealand pharmacies with viagra viagra and young adults
    buy generic viagra
    take cialis viagra concurrently – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  38. Awaiting moderation

    Thanks, Ample facts!

    viagra cardiovascular activity 12 generic viagra overnight delivery
    viagra 100mg
    lavitra vs viagra – https://genericviagrantx.com

    KeithTaf
    Richardphepe
    Ernestones

  39. Awaiting moderation

    With thanks! I appreciate this.

    buy cheapest online place viagra search viagra free sites find
    buy viagra online
    martin hickman and viagra – https://genericviagrantx.com

    KeithTaf
    Richardphepe
    Ernestones

  40. Awaiting moderation

    Cheers. A lot of facts!

    viagra time effective hero tabs versus viagra
    viagra generic
    walmart price for viagra 2010 – https://genericviagrantx.com

    KeithTaf
    Richardphepe
    Ernestones

  41. Awaiting moderation

    Kudos! Very good information!

    viagra refractory period denmark in viagra
    generic viagra
    viagra about – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  42. Awaiting moderation

    Amazing a good deal of very good material!

    viagra penis enhancer videos types of viagra
    cheap viagra
    viagra gif – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  43. Awaiting moderation

    Fine data. Regards.

    viagra viris high blood pressure private uk viagra prescription
    viagra for women
    sales online viagra sale – https://genericviagrantx.com

    KeithTaf
    Richardphepe
    Ernestones

  44. Awaiting moderation

    Thanks. Quite a lot of write ups!

    cheapest price for generic viagra viagra without side effects
    viagra 100mg
    viagra in the rectum – https://genericviagrantx.com

    KeithTaf
    Richardphepe
    Ernestones

  45. Awaiting moderation

    This is nicely expressed. !

    viagra hepatitis viagra serotonin
    viagra for sale uk
    viagra subistute – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  46. Awaiting moderation

    Many thanks, I value this!

    viagra advertisements viagra viagra a a target blank
    viagra generic
    connolly cowper viagra edinburgh pages pregnant – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  47. Awaiting moderation

    Thanks, Excellent stuff!

    mccain viagra commercial viagra without prescription new york
    generic viagra 100mg
    viagra lawsuits settled in may 2010 – https://genericviagrantx.com

    KeithTaf
    Richardphepe
    Ernestones

  48. Awaiting moderation

    Thanks, Ample postings!

    prescription for viagra vasoderm better than viagra
    buy generic viagra
    research on copd and viagra – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  49. Awaiting moderation

    Really all kinds of fantastic info!

    viagra nitric oxide deleuze on viagra
    buy generic viagra
    sav on viagra – https://genericviagramsl.com

    KeithTaf
    Richardphepe
    Ernestones

  50. Awaiting moderation

    You said it adequately.!

    female free sample viagra post haste pharmacy viagra
    generic viagra 100mg
    usa online pharmacies that sell viagra – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

  51. Awaiting moderation

    You actually suggested this terrifically!

    viagra in chewing gum prednisilone and viagra
    viagra generic
    does viagra have an expiration date – https://genericviagrantx.com

    KeithTaf
    Richardphepe
    Ernestones

  52. Awaiting moderation

    With thanks! An abundance of tips.

    is there a female viagra viagra wwe
    buy viagra
    viagra erection after coming – https://genericviagrarcp.com

    KeithTaf
    Richardphepe
    Ernestones

Leave a Reply

Your email address will not be published.

*

© 2020 Tai Zee Kin

Theme by Anders NorenUp ↑