If world oil price continue to drop, maybe no one will drive into Malaysia and pump our subsidized petrol…

If world oil price continue to drop, maybe no one will drive into Malaysia and pump our subsidized petrol…

Baht is so strong, SGD is so strong, surely no need drop by to pump petrol anymore

By the way, this article is only aimed at those who drove into Malaysia to pump our subsidized petrol yeah. I know many Thai or Singapore drivers will pump petrol to full tank in their own country and does not even bother to pump any petrol in Malaysia. Think about it, seriously. With a strong Baht, it meant that oil prices will be cheaper. So, the price of petrol, even if there’s no subsidy will be lower.

Now, coupled with a lower oil price means there’s potential that car owners in bordering towns will not even think about driving into Malaysia to pump our subsidized petrol at all, not even a thought.

Meanwhile SGD is more than 3 times higher. So, someone earning SGD should be able to afford to buy petrol in Singapore easily. It’s just SGD2.84 per litre (RON92). Now there’s further good news. World oil price is expected to fall further as the Ukraine-Russia war may be going for a pause in the near future and possibly a full stop too.

Article in nst.com.my. Oil prices fell on Thursday on expectations of a Ukraine-Russia ceasefire which could pave the way for the unwinding of Western sanctions against Russian supply, though trading was set to remain thin due to the US Thanksgiving holiday.

Brent crude futures shed 21 cents, or 0.3 per cent, to US$62.92 a barrel as of 0108 GMT, while US West Texas Intermediate crude futures dropped 21 cents, or 0.4 per cent, to US$58.44 a barrel.

Both contracts settled about 1 per cent higher on Wednesday as investors assessed oversupply risk and the prospect of a Russia-Ukraine peace deal.

US envoy Steve Witkoff is set to travel to Moscow next week with other senior US officials for talks with Russian leaders on a possible plan to end the nearly four-year-old war in Ukraine, the deadliest in Europe since World War Two. Article in nst.com.my

Actually, unsubsidized petrol price is still somehow cheaper…

It’s RM2.63 per litre right now here in Malaysia for unsubsidized fuel. In Thailand it’s 31.85 baht (RM4.08) per litre. Hmm… Meanwhile in Singapore, the petrol price is SGD2.84 per litre (RM9). Oh…ok, I guess whether subsidized or no subsidy or whether oil prices in the world is coming down or not, for some countries, their petrol prices will be higher than even our unsubsidised petrol.

I do feel grateful every time I pump petrol because I have just returned from Melbourne and I rented a car for 4 days over there. Petrol price for RON 91 is as low as AUD1.62 per litre (RM4.37) and as high as AUD2.23 (RM6) per litre. yes, I know they are earning AUD, so pumping petrol at AUD1.62 per litre seems reasonable right? The only issue is that since every petrol station has a different price, some driving around is needed to identify the one with the lowest price. Thus we do not need to worry at all about Australians. When they are here and they pump out unsubsidized petrol, they will still enjoy a lower petrol price.

Can we save enough for a property downpayment then?

If we could save RM20 every time we pump petrol and we pump twice per week, that’s RM40 per week or RM2,080 per year. Ahem… 10 years later it’s RM20,800. Yes, you can see now that it’s quite foolish to try to save money due to petrol BUT still buy a car which is twice the price of an equivalent car (just different brand). Buy the right car that we love. Not just buy a car to save on petrol. Saving from the car price immediately is better than saving from every pump at the station.

Buying a car for our purpose and we would have already saved enough for a downpayment. if it’s not for downpayment, not for any savings, then buy any car that makes you happy. Do not pretend and say it’s because you can save more from fuel consumption. That will take like forever in order to realize and achieve. Haha.

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