Oil tumbles, but when will petrol prices follow?

By Harry Wallop, Consumer Affairs Correspondent , 15/09/08, Telegraph.co.uk

The price of oil has fallen below $100 a barrel for the first time in nearly six months, as the likelihood of a severe global recession increased in the wake of the collapse of Lehman Brothers.

# Oil markets escape Hurricane Ike mayhem

The price fell more than $4 to $97 US dollars a barrel. The last time the price was below $100 was April 2.

Petrol forecourts in Britain are now under pressure to cut the price of unleaded petrol and diesel, motoring groups said. They warned that drivers had missed out on the full benefit of the oil price fall earlier this summer, when it came down from its peak of $147 a barrel.

The fall in the price of oil came as investors digested the collapse of Lehman Brothers. With investors betting that the chaos on Wall Street would cause the credit crisis to deepen – and economies around the world to use less oil – investors started to sell the commodity.

The sell-off was also prompted by reports that suggested the damage from Hurricane Ike was less than feared.

The storm destroyed at least 10 oil and gas platforms and damaged pipelines in the Gulf of Mexico – only a small amount of the 3,800 production platforms in the Gulf. Three years ago, a series of hurricanes knocked out more than 100 platforms.

The AA warned that petrol prices on UK forecourts have not fallen as quickly as oil, with average unleaded petrol down from July's peak of 119.7p to only 112.8p at the weekend.

Average diesel prices have fallen from 133.3p to 124.2p. This compares to the 34 per cent fall in the oil price.

The AA said that petrol prices needed to fall by another 4 pence in the coming days, or motorists would lose out once again.

Luke Bosdet, a spokesman for the motoring group, said: "I am not hopeful. Petrol retailers have a history of dragging their feet."

Govt offers 2,000 permits and subsidised diesel to avert balik kampung travel crisis

PETALING JAYA: It is still uncertain whether all of the 2,000 temporary bus permits will be taken up despite the Government’s latest diesel subsidy offer to bus operators.

Pan Malaysian Bus Operators Association president Datuk Ashfar Ali said he could not comment on whether school, factory and charter bus operators would lease out their buses, even with the subsidised diesel allocation.

Bus rush: An official of a bus company at the Hentian Putra bus terminal in Kuala Lumpur making a ‘time out’ sign with his hands as he tries to control the crowd rushing to buy bus tickets yesterday to balik kampung during the coming Hari Raya festive period. — AZMAN GHANI / The Star

“Some are willing to take on shorter routes while others are not willing at all,” he said.

He said he would have to study the details of the move announced by Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad before commenting further.

Some 1,900 temporary licences were issued to school, factory and charter buses last year to cope with the Hari Raya crowd, but this year, there had been few takers so far despite the Entrepreneur and Cooperative Development Minister Datuk Noh Omar setting aside 2,000 temporary permits.

Today, Noh is meeting with bus operators in Kuala Lumpur to resolve this looming crisis that could leave tens of thousands of people who travel by bus back to their hometowns to celebrate the Hari Raya Aidilfitri in a quandary.

Bus operators had earlier said that it was “not economically feasible” to lease school, factory and charter buses, as the costs of operations were high.

Ashfar, prior to government's announcment assured there would be 300 to 400 extra buses to cater to the balik kampung crowd, but it was insufficient to meet the demand.

“Usually, we have about 21% extra buses to fill in for buses that are undergoing maintenance. We roll out all of them during festive periods,” said Ashfar.

It is learnt that many express bus operators were previously unhappy that they are only receiving between 4,000 and 5,000 litres of subsidised diesel per bus on average.

By Teh Eng Hock - The Star 4 September 2008

Bus operators to get subsidy for Raya

PUTRAJAYA: Bus operators will be offered diesel subsidy of 9,000 litres for each additional express bus used between Sept 15 and Oct 15 during the balik kampung rush for the Hari Raya festival.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said the decision was made by the Cabinet Wednesday to ensure there would be enough buses for Malaysians to go home for the festive season.

He added that the Government would be spending between RM100mil and RM150mil in subsidy.

Shahrir said the Cabinet was expecting an additional 2,000 express buses on the road with the move to offer the subsidy.

"This is in addition to the 30% surcharge and discounted toll charges to ensure Malaysians have enough transportation to get home.

"Last year there were about 1,900 additional buses during the festive season and we are expecting more this year with this move," he told reporters Wednesday after attending the launch of Bernama's web television by Prime Minister Datuk Seri Abdullah Ahmad Badawi here.

The Cabinet decision was made based on complaints by bus operators that there would be a lack of buses this Hari Raya as school and factory bus operators refused to lease out their buses.

Bus operators had also said that the 30% surcharge allowed by the Government for the Hari Raya season, effective for one month from Sept 15, was inadequate to give the express bus operators sufficient capital to lease additional buses.

Shahrir added that Entrepreneur and Cooperative Development Minister Datuk Noh Omar was expected to give more details on the Cabinet decision.

On whether there would be another announcement on the fuel price this month, Shahrir said he hoped that there would be a Hari Raya gift as the global oil price had dropped recently.

"In fact the announcement made late last month was supposed to be made this month as planned but when the world oil price dropped and Merdeka Day approached the Government decided to announce it last month itself.

"The same may happen this month too; we will announce (early) if there is good news," he said.

Source : The Star

30% surcharge likely for balik kampung bus tickets

PETALING JAYA: Those who plan to balik kampung by bus this Hari Raya may have to pay 30% more for their tickets.

Industry sources said the Government had agreed to impose a surcharge on stage and express bus fares from Sept 15 for a month.

Travellers from Kuala Lumpur to Johor Baru who were paying RM23.90 for a ticket each will now need to pay RM31.07 while those heading to Penang will have to pay RM34.84 instead of RM26.80.

Despite news of the increase, bus operators have yet to start selling tickets for the Hari Raya period as they are waiting for the Government to make an official announcement.

Pan Malaysian Bus Operators Association president Datuk Ashfar Ali said they would not sell tickets in advance until they receive official confirmation.

“Otherwise, we don’t know for sure how much the tickets would be sold for or whether we might be penalised for selling at a new price without getting the nod from the authorities,” he said.

Ashfar said they would continue to push for a 100% fare increase, something they had been demanding for since late last year.

“This (30% increase) is just an interim measure. We are led to believe that the figure will be adjusted accordingly,” he said.

He said there might not be a need for a 100% fare hike if the Government announces goodies for the bus industry in Budget 2009.

Among the items asked for by operators are lower taxes for chassis, air-conditioning systems, spare parts, tyres and batteries, as well as the setting up of a fund by the Government to train new bus drivers.

By TEH ENG HOCK - The Star 28 August 2008

Express, stage bus fares up 30% for Raya

KUALA LUMPUR: Express and stage bus operators have been allowed to impose a 30% fare surcharge during the Hari Raya period.
Entrepreneur and Cooperative Development Minister Datuk Noh Omar said the fare surcharge would come into effect between Sept 15 and Oct 15.

The government has allowed a 30% fare surcharge on express and stage bus tickets this Hari Raya.

He also hinted that bus fares would be raised after Hari Raya.
"If bus operators improve their services during the festive period, then we will consider giving them the fare hike they have been asking for since 2007," he said.
The last time bus fares were raised was in 2005.
Noh also said that fares for premier and executive buses would be liberalised, while the fare for economy class would continue to be controlled.

By TEH ENG HOCK - The Star -28 August 2008

30 tips on how to save fuel ...

1 Drive Smoothly
Aggressive driving can use as much as a third more fuel than safe driving. Avoid accelerating or braking too hard and try to keep your steering as smooth as possible.

2 Use Higher Gears
The higher the gear you drive in the lower your engine speed is, which can improve fuel efficiency. So change up a gear whenever you can, without labouring the engine.

3 Tune and Service Your Engine
A well tuned engine can improve fuel economy by up to 4%, so change your oil and follow your car manufacturer’s recommendation on servicing.

4 Keep Your Tyres at the Right Pressure
Correctly inflated tyres are safer and last longer. A tyre that is under inflated by just 1psi can reduce fuel efficiency by as much as 3%. An under or over inflated tyre is also more susceptible to failing.

5 Avoid Carrying Excess Weight
For every extra 100 lbs (45 kg) you carry your fuel efficiency can drop by 1-2%. So keep your boot or back seat clear of unnecessary items that just add weight to your vehicle.

6 Remove the Roof Rack
If you’re not using your roof rack, then remove it. They affect the aerodynamic efficiency of vehicles and create drag, reducing fuel economy by as much as 5%.

7 Use the Correct Oil
Always use the recommended grade of motor oil. Using the manufacturer’s recommended lubricant can improve fuel efficiency by 1-2%. Higher quality motor oils can help your engine operate more efficiently.

8 Fuel Matters
All fuels are not created equal. Fuel economy is maximised in the engine through a combination of good driving habits and using the right fuel…one that helps reduce friction and improves cleanliness in the engine, thereby improving fuel efficiency. The Taylors have chosen Shell fuel to power their Guinness World Records as a result of their own personal tests of several commercially-available fuels and their belief in Shell’s product quality.

9 Avoid Excess Idling
Idling gets you nowhere but still burns fuel. Turn the engine off when you’re in a queue, or waiting for someone, until you need it.


10 Plan Trips Carefully
Cutting down on the time spent in the car is the easiest way to conserve fuel. To reduce driving time, combine all your short trips and errands into a single journey.

For more tips please log on to : www.fuelacademy.com

Tips on Filling your Vehicles...

I don't know what you guys are paying for petrol... but here in Durban, we are also paying higher, up to 47.35 per litre. But my line of work is in petroleum for about 31 years now, so here are some tricks to get more of your money's worth for every litre.

Here at the Marian Hill Pipeline, where I work in Durban, we deliver about 4 million litres in a 24-hour period thru the pipeline.

One day is diesel; the next day is jet fuel, and petrol, LRP and Unleaded. We have 34-storage tanks here with a total capacity of 16,800,000 litres.

ONLY BUY OR FILL UP YOUR CAR OR BIKKIE IN THE EARLY MORNING WHEN THE GROUND TEMPERATURE IS STILL COLD. Remember that all service stations have their storage tanks buried below ground. The colder the ground, the denser the fuel, when it gets warmer petrol expands, so buying in the afternoon or in the evening.... your litre is not exactly a litre.

In the petroleum business, the specific gravity and the temperature of the petrol, diesel and jet fuel, ethanol and other petroleum products play an important role. A 1degree rise in temperature is a big deal for this business. But the service stations do not have temperature compensation at the pumps.

WHEN YOU'RE FILLING UP, DO NOT SQUEEZE THE TRIGGER OF THE NOZZLE TO A FAST MODE. If you look, you will see that the trigger has three (3) stages: low,
middle, and high. In slow mode, you should be pumping on low speed, thereby minimizing the vapours that are created, while you are pumping. All hoses at the pump have a vapour return. If you are pumping on the fast rate, some of the liquid that goes to your tank becomes vapour. Those vapours are being sucked up and back into the underground storage tank so you're getting less worth for your money.

ONE OF THE MOST IMPORTANT TIPS IS TO FILL UP WHEN YOUR TANK IS HALF FULL. The reason for this is, the more fuel you have in your tank, the less air occupying its empty space. Petrol evaporates faster than you can imagine. Petroleum storage tanks have an internal floating roof. This roof serves as zero clearance between the petrol and the atmosphere, so it minimizes the evaporation.

Unlike service stations, here where I work, every truck that we load is temperature compensated, so that every litre is actually the exact amount.

ANOTHER REMINDER, IF THERE IS A FUEL TRUCK PUMPING INTO THE STORAGE TANKS, WHEN YOU STOP TO BUY, DO NOT FILL UP - most likely the petrol/diesel is being stirred up as the fuel is being delivered, and you might pick up some of the dirt that normally settles on the bottom.

Hope, this will help you get the maximum value for your money.