This is a response to a comment by anonymous at 11am on Tony Pua’s blog entry. I was tempted to reply directly on his blog, but because this issue is not really directly topical to Tony’s thread, I decided against that in order to maintain that thread of discussion for the proposed economic policies (where the implicit assumption is that oil subsidies had to go). So here we go…
Anonymous said…
IN CASE YOU DIDN’T KNOW…….
Our “piggy brain” govt always compared our petrol to NON
oil-producing countries like Singapore and Thailand but got
no balls to do the comparison with other oil producing countries
like below. Check for yourself:-
UAE – RM1.19/litre
Eygpt – RM1.03/litre
Bahrain – RM0.87/litre
Qatar – RM0.68/litre
Kuwait – RM0.67/litre
Saudi Arabia – RM0.38/litre
Iran – RM0.35/litre
Brunei – RM1.10/litre
Nigeria – RM0.32/litre
Turkmenistan – RM0.25/litre
Venezuela – RM0.16/litre
MALAYSIA – RM2.70/litre
anon 11am,
Maybe it would be wise to consider some other numbers along side the price tag:
This analysis is of course very rough la, I don’t plan to get a masters in econs out of this, but just for the sake of a mamak stall quality discussion…
(and another disclaimer: I am assuming the numbers I got are correct… and I am boldly assuming that I didn’t make any arithmetic mistakes!)
UAE – 97.8B barrels left, uses 1.8M barrels a day, so the ratio is 54k
Eygpt – 3.7B, 590k, 6.2k
Bahrain – 124M, 27k, 4.5k
Qatar – 15.2B, 80k, 190k
Kuwait – 104B, 335k, 310k
Saudi Arabia – 266.8B, 1.8M, 147k
Iran – 132B, 1.5M, 88k
Brunei – 1.3B, 15k, 86k
Nigeria – 35B, 290k, 120k
Turkmenistan – 500M, 95k, 5k
Venezuela – 79B, 560k, 141k
MALAYSIA – 3 billion barrels left, 515 barrels used a day. Our ratio… 5.8k
The ratio describes the number of days until we consume more oil than we have under our feet: barrels divided by barrels per day = number of days. If we want to compare Malaysia, we should only compare against those countries that are in a similar position to us in terms of how much we have and how fast we use it. Therefore, I suggest that comparison is only valid between Malaysia and the following countries:
Turkmenistan – 500M, 95k, 5k
Eygpt – 3.7B, 590k, 6.2k
Bahrain – 124M, 27k, 4.5k
All the other countries listed have MUCH healthier ratios.
So now, if you please, consider the geopolitical and economic situations in these countries and compare to Malaysia, then see what the situation is.
References:
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2178rank.html
http://www.nationmaster.com/graph/ene_oil_con-energy-oil-consumption