EXPERIENCE IS THE TEACHER OF ALL THINGS
-Julius Ceaser

Sunday, April 06, 2008

Understanding Petrol?

Rich to pay more

JOHOR BARU: The subsidy on petrol may be revised with the bulk going to the regular type so that prices will be kept down for the average motorists.

Under the plan, the existing classes of petrol at the pump — Octane 92 and Octane 97, commonly referred to as RON 92 and RON 97 — will be abolished and replaced by Octane 95 and Octane 99.

That was reported in NST.

RON 92 = Octane 92
RON 97 = Octane 97

The two Octanes will be abolished and replaced by Octane 95 and Octane 99. Confusing eh? Me too. LOL

But Sheridan Mahavera the reporter gives an explanation.
Octane 92 is used mainly by motorcycles while other vehicles normally use Octane 97.

Octane 95 could be used in most vehicles and would be the fuel of choice for low- and middle-income earners.

Octane 99 will be a premium fuel that costs more than Octane 95 or 97, that is usually used in performance luxury cars and Sports Utility Vehicles (SUVs).

Proton says that a majority of cars can use Octane 95. The price of Octane 99 will still be subsidised but to a lower extent.

A new system of subsidising mechanism will be implemented by the government and targeting the much needed lower- and middle-income group, and giving a choice to the rich on what petrol they want to fill in their tanks. Therefore it will benefit the lower and middle income who can use Octane 95 on their cars while the higher income group with luxury cars can opt for a higher quality petrol.

The Price presently

Octane 92 is sold at RM1.88 per litre at pumps in Peninsular Malaysia, Sabah and Sarawak.

Octane 97 is priced at RM1.92 per litre in Peninsular Malaysia while in Sabah it is RM1.90 and RM1.91 in Sarawak.

"The system is a shift in how we price petrol, but it is necessary if we are to lessen the burden on the lower- and middle-income groups."

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