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Best Credit Card for Petrol in Malaysia

Traveling with cars is very common for most of the Malaysians, as the current public transport infrastructure does not allow us to commute conveniently as compare to driving our own car. Hence, the amount of money spent on petrol has a significant value and we all wish to save more money on our monthly petrol bill. There are a number of credit cards for petrol cashback and provide more benefits whenever we pump petrol.  

Before moving to the credit cards list, we would like to know more on the ceiling price for fuel. What is a ceiling price? A ceiling price is the maximum price that a seller is allowed to charge for a product or service, ensuring fair and reasonable business practices. This price control is imposed by the government in order to protect consumers from being charged sky high on commodities like petrol. Beginning from end of March 2017, the ceiling price will be announced every Wednesday. In short, this move is to enable consumers to be aware of the current prices of the petrol.

HSBC Amanah MPower Platinum

As mentioned, there are a number of credit cards in Malaysia are offering cashback or reward points when you spend on petrol. Here are some of the best credit cards for you when it comes to petrol spending. The HSBC Amanah MPower Platinum Visa Credit Card-I has good cashback program that helps you to get the most of your purchases. If you spend on petrol and groceries, you will be receiving either a 2% or 8% cashback rate with monthly cap of RM50. Bear in mind that there will be a 20 days grace period for all shopping transactions provided that all your outstanding balance as per stated on the monthly statement is fully paid. If you are interested in this credit card, your minimum income must be RM2500 or RM30,000 per annum. The annual fees will be less than RM100 for primary card and less than RM50 for supplementary card. However, you will be eligible for an annual fee waiver with a minimum of 12 swipes in a year.   

Shell-Citi Gold Credit Card

If you want to save on your petrol spending and have exclusive privileges, Shell-Citi Gold Credit Card may be the one credit card that meets these criteria. It is divided into three tiers. In tier 1, you may receive up to 4% rebate on shell fuel spending when you spend minimum RM300 up to RM999 per month. In tier 2, you may receive up to 6% rebate on shell fuel spending when you spend minimum RM1000 up to RM2499 per month. In tier 3, you may receive up to 8% rebate on shell fuel spending when you spend minimum RM2500 and above per month. The monthly cap for tier 1, 2 and 3 is RM10, RM30 and RM64 respectively. In order to apply for this credit card, your minimum monthly income must be RM2000 or RM24,000 per annum. The annual fees will be around RM200 for the principal card holder whereas about RM100 for the supplementary card holder. However, there will be no annual fees for the first year of signing up the credit card when you use it for three times within two months of the card approval.

Petronas Maybank Visa

We also have some Petronas related credit card such as the Petronas Maybank Visa, which can be considered as it helps t save on petrol cost. With this credit card, you may receive additional privileges like an 8x Treat Points on weekends and 5x Treat Points on weekdays. The points that you have collected can be used to redeem petrol. Thus, the more points you collect, the more free petrol you can redeem. You can apply for this credit card if you have a minimum income of RM2500 or RM30,000 per annum. There is no annual fee incurred. Another Petronas related credit card is the CIMB Petronas Mastercard. This credit card is highly recommended for those of you who frequently spend on fuel at Petronas as you can get up to 7% cash rebate daily by using this card. There will be a 7% cash rebate with a statement balance of RM3000 and above, 3% cash rebate with a statement balance of RM3000 and below; and 2% cash rebate on other retail spend. The cash rebate on Petronas spending will be capped at RM50 monthly but there is no limitation of cash rebate on other retail spending. Similar to the Petronas Maybank Visa, it does not charge annual fee. You must have a minimum income of RM2000 in order to be eligible for this credit card.

Alliance Bank Platinum Card

The Alliance Bank Platinum Card will not only reward you when you spend on fuel but also allow you to redeem air miles for both Enrich Miles and AirAsia BIG Points. However, this is only applicable to Visa credit card holder only. Here are the points that you will receive for each spending, 3x for every RM1 spent on overseas retail, 2x for every RM1 spent on petrol, grocery and utility and 1x for every RM1 spent on domestic retail. Interestingly, there will be no expiry date for the points that you have collected. If you wish to apply for this credit card, your minimum income has to be RM5000 per month. There will be an annual fee waiver every year with minimum spend of RM5000 or 12 swipes within 12 months period.

Another credit card that helps you to save money when you pump petrol is the Alliance Bank You:nique. It is really unique as it offers the unique feature of having a personalized credit card. Apart from that, you can choose your personal preference feature between rebates, rates and rewards. If you have chosen rebates, you can get up to 3% cashback and 2 reward points for every RM1 on every overseas and retail spending. The minimum requirement to apply for this credit card is very simple as long as you have a minimum income of RM2000 per month. The annual fee that will be charged is about RM150 which will be waived for its first 3 years. Then, you’ll be able to get the annual fees waived if you spend RM5000 or 12 transactions annually for the subsequent years.

Standard Chartered Just One Platinum Card

You may also save money when you pump petrol by using the Standard Chartered Just One Platinum Card. At the same time, you will be getting some other benefits too. If you spend a minimum retail of RM500, RM800 and RM1500, you will be receiving a 2%, 3% and 5% cashback respectively. Nevertheless, there is a cashback cap for retail spending and minimum petrol spend amount in order to be eligible for cashback. To sign up for this Standard Chartered credit card, your minimum monthly income has to be RM2000 or annual income has to be RM24,000. The annual fee is slightly higher about RM260.

If you are looking for an Islamic petrol credit card, the AmBank CARZ Platinum Credit Card is one of the best options. It is a Shariah compliant credit card which is ideal for those of you who do not wish to be limited to only one petrol brand. With this credit card, you can earn cash rebate easily on any petrol purchase of any brands. Revolvers can get a 3% rebate whereas transactors can get 2% rebate capped at RM20 per month. Besides that, you can also collect CARz Point, which can be used to redeem auto-related goods and services. With a monthly income of RM2500, you are already eligible to apply for this credit card. There will be no annual fee which is free for the principal and first 3 supplementary card holders.

Look for the best credit cards and personal loan in Malaysia.

 

New Formula For Fuel Prices to be announced next week

BATU KURAU (Perak): Domestic Trade, Cooperatives and Consumerism Minister, Datuk Seri Hamzah Zainuddin said a new formula to fix fuel prices will be announced next week.

The new formula to fix oil price is aimed to stabilize the oil industry. He added that the ministry would be holding a meeting with oil industry players next week to discuss the formula.  

“We sympathize with the petrol station operators who suffered losses when oil prices drop. They (petrol station operators) feel they are the victims (when prices drop),” he told reporters after attending a Ramadan function here Friday.  

He explained, adding that the ministry would ask the Government to assist fuel retailers that have been badly affected by the deviation in oil prices. Recently, the retail prices of petrol and diesel have been on a downward trend lately. The Petrol Dealers Association of Malaysia (PDAM) described the weekly price adjustments as “unhealthy,” and the cause of several station closures since its implementation.

Since April 1, the retail prices of RON95, RON 97 and diesel are set on a weekly basis which in on monthly basis before.

 

No discount on petrol station

According to a news report by The Star Online on 31st of March 2017, petrol station operators are no longer allowed to offer discounts on fuel for now. In this online news report, Akhtar Sahari, Domestic Trade, Cooperatives and Consumerism Ministry corporate communications head, said

“Petrol station operators will not be allowed to offer discounts on fuel for the time being”

Furthermore, he also added that there is a possibility that these petrol station operators will be given permission again sometime in the future to offer promotions on fuel. However, for now, all petrol station operators need to follow the retail prices that are set by the Ministry.

He said that while the Ministry allows petrol station operators to give discounts, they are not allowed to give discounts right now until the new measures have been taken. According to Akhtar Sahari, he is unable to give a specific timeframe on when these new measures will be taken by the Ministry at this point of time.

In order to address the concerns voiced by some of the low volume petrol station operators, Akhtar Sahari said that the Ministry will come up with a proper guideline to address those concerns. He has also reminded all consumers to be cautious of smartphone apps that display the listings of fuel prices by saying that these listings can be inaccurate.

After screenshots of a smartphone app listing lower fuel prices went viral online, the Ministry responded by releasing an official statement to state that there was no price war between the petrol stations.

The Ministry also released an official statement declaring that all of the petrol stations must sell their fuel at retail prices and these retail prices must be set by the Malaysian Government.

Sometime early this month, Datuk Seri Hamzah Zainudin, Domestic Trade, Co-operatives and Consumerism Minister, stated that the petrol station operators have two choices to follow when it comes to selling the fuel at retail prices. They can either follow the ceiling price under the new system or offer lower fuel prices in order to promote their petrol stations. However, before doing any promotions, the petrol station operators require a prior approval from the Ministry.

Following that statement by Datuk Seri Hamzah Zainudin, the Petrol Dealers Association of Malaysia chipped in to voice out their concerns that small dealers in rural areas will find it difficult to sell their fuel on discounts.

 

How Fuel Prices are calculated in Malaysia

Do you know how the fuel prices are calculated here, in our country? Are you familiar with the Automatic Pricing Mechanism (APM)? This is the method used in calculating the fuel’s price, which was implemented way back in the year 1983. The main purpose of its establishment is to stabilize and maintain the prices of petrol and diesel. It was done by including the variation in amount of sales tax and subsidy, so that the retail price will only change in situations in which the difference in prices exceed the threshold and limit of the tax and subsidy.

Many people are not aware of how APM works leading to an increase amount of complaints in regards to lack of understanding of the method. Some has already come out with explanation in trying to educate the public about the APM. One term that need to be understand as well is the Mean of Platts Singapore (MOPS). Again, what is it? MOPS is one type of swaps that is actually a future price. A buyer of a certain refined oil product will be referring to the MOPS index as a more reliable indicator of world prices instead of crude oil prices. Our country’s government is using the MOPS in order to determine the fuel prices as the MOPS price is typically more premium than the crude oil prices. Besides Malaysia, most of the ASEAN countries and Australia are using the MOPS as the base for their fuel prices. Platts is a McGraw-Hill company in Singapore that track, assess and update the index of MOPS based on the daily average of all the trading transactions between all the petroleum-based products’ buyer and seller.  

For the breakdown of the fuel price in Malaysia, the price of Alpha is fixed at 5 cents per litre for petrol and 4 cents per litre for diesel which act like a buffer for oil companies. For example, oil companies will need to bear the additional cost if they purchase a product that is higher than the price published by MOPS. Conversely, the companies will gain extra if they buy the product with a price lower than the MOPS published price. For operational cost which covers both the transport and marketing costs, they are set at 9.54 cents per litre for the Peninsular of Malaysia. For Sabah and Sarawak, they are set at 8.98 cents and 8.13 cents respectively.  

In regards to sales tax and subsidies, these are combined. Referring to the Sales Tax Act 1972, our government is allowed to collect maximum sales tax of 58.62 cents per litre for petrol and 19.64 cents per litre for diesel. Do take note that this is effective when the fixed retail price of the petrol and diesel is higher than the actual price at the pumps. Inversely, the government can pay a subsidy of the same range if the fixed retail price is lower than the actual cost of the petrol and diesel at the pumps. Expert says that the 30 cents maximum subsidy, as part of the improved APM is a way to stabilize the retail prices of the fuel. Thus, this allows the players in the industry to manage their expenditure and expenses in a more organized manner.

Crude oil falls 20% but will Malaysian Petrol be cheaper ?

Global crude oil price has dropped dramatically during the end of June plunging as much as 20% from $60 per barrel to $48 per barrel as of end of July. There are several factors that caused the reduced demand for oil.

crude oil

The Iran Nuclear Deal was reached where sanctions on Iran oil and gas sector is expected to be lifted and the world is expected to have more supplies of oil. The crash in China stock market, Greece issues and world economy uncertainties and recently the fall of Gold and commodities price have also reduced the demand for the black gold.

Floating Price Mechanism

Malaysian has effectively removed it’s fuel subsidy at the end of 2014 as part of government effort’s on subsidy rationalization program. The pump price are set of floating mechanism where it will be adjusted on monthly basis based on the global oil price.

Prices for Ron 97, Ron 95 and Diesel has increased substantially over the past few months however will the price be adjusted with the recent slump in global oil price? Malaysians will just have to wait until the midnight of August to know the next price for fuels.

 

No more early news for petrol price

According to Minister of Domestic Trade Cooperative and Consumerism ,Datuk Seri Hasan Malek the government will stop announcing petrol price to the public before midnight at the end of month but instead the price will only be released after midnight at the start of the month. This move is taken to prevent congestion and disruptions when motorist rushed to fill up petrol at the last minute which usually leads to out of petrol situation.  The ministry will be sending the latest price directly to the petrol dealer instead. The Petrol Dealer Association of Malaysia (PDAM) has welcomed the move as they have requested the government to do so.

Malaysians will not be able to know the official petrol price but instead will only know the price at the early month.  During the month of June, Malaysians are officially paying RM 2.05 per liter for Ron 95, RM 2.35 per liter for Ron 95 while RM 2.05 per liter for Diesel.

Petrol Price expected to rise on March 2015

 

Petrol Price is speculated to increase on midnight 12:01am 1st March 2015 although Domestic Trade Cooperative and Consumerism Minister Datuk Seri Hasan did not specifically mention on the price increment.  It has been widely believe that the price of petrol will increase by 10 to 20 cents as of March 2015. The international oil prices has rose to 60 USD per barrel for Brent crude oil and 50 USD per barrel for WTI for the month of February. The new price for Ron 95, Ron 97 and Diesel will be announced on 12:05 am tonight.

Petrol Price Reduction February 1st 2015

The Ministry of Domestic Trade, Co-operatives and Consumerism has announced that petrol price will be reduced in Malaysia following the floating mechanism that is based on international oil price. The news was also shared by Deputy Finance Minister Datuk Ahmad Maslan on his Twitter account.  The Ron 95 shall be reduced  by 21 cents, Ron 97  by 11 cents and Diesel by 23 cents. With the following adjustments, the new price for Ron 95 will be at RM 1.70 per litre, Ron 97 at RM 2 per litre and Diesel at RM 1.70 per litre.

Petrol Dealers Association has also voiced concern on the petrol price reduction as it will hurt their profit.  According to it’s president Datuk Hashim Othman, any price reduction will have serious impact on petrol dealers.

The new price will be effective starting 1st of February 2015. Like https://www.facebook.com/ron95info?fref=ts to follow the latest petrol price in Malaysia.

 

Ron 95 vs Ron 97

What most of us know about RON 95 and RON 97 is that RON 97 is more expensive than RON 95. Since the recent reduction in the price of RON 97 on 1st of December 2014, the price difference between RON 97 and RON 95 is quite low – about 20 cents difference.  But still RM1 every 5 liters can add up at the end of the day. The price reduction of RON 97 has increased the demand for RON 97 and more and more people have been using it, but does it really do anything for engine performance? Maybe you’ve had some ‘mamak’ conversations about RON 95 and RON 97 – about whether it actually increases engine performance and whether it’s worth the price to pay more for. But before we start the factual comparisons of RON 95 and RON 97, let’s firstly be clear about RON – what is it and what does it stand for? RON is an abbreviation for Research Octane Number and is basically a measure of the quality and performance of the fuel.  RON is calculated by measuring a fuel’s knocking resistance in spark-ignition internal combustion engines. Knocking is what happens before the flame from the spark plug reaches the air-fuel mixture and ignites prematurely. Premature ignition can cause a decrease in performance and might also harm the engine.The higher the RON, the better the fuel’s knocking resistance and the fuel’s ability to delay auto ignition.

 

So which fuel should you use – RON 95 or RON 97. First of all, you should consider the vehicle you are driving. Check your vehicle’s service manual for the minimum RON rating that it requires. If your engine requires a minimum of RON 95, you might as well use RON 95 as it is cheaper than RON 97. Using RON 97 on a vehicle that only requires RON 95 is a waste of money as it hardly increases engine performance.However, if your engine requires a minimum of RON 97, then be ready to pay a little more  for fuel because filling your engine with a lower RON than the one specified might lead to premature ignition which can damage your engine in the long-run and in the worst case scenario, result in an explosion. Generally, cars with higher performance engines or engine capacity above 2400cc use RON 97. Most cars in Malaysia are built to run on RON 95. Some newer high compression engines also run on RON 95.

Contrary to popular belief, RON 97 does not make your engine perform better; rather it actually makes fuel burn less easily. RON simply refers to the ability of the fuel to resist knocking and delay auto ignition. Some may argue that the engine oil in vehicles using RON 97 stays cleaner longer as a result of the combustion generating lower heat. But actually RON 97 stays cleaner longer because of the detergents used and has nothing to do with the combustion rating.

Another common misperception about RON 97 is that it gives you more mileage than RON 95. In fact, the amount of mileage you get has to do more with how you handle your vehicle and the traffic conditions.

 

Here is a comparison of the RON 97 and RON 95 prices from late 2013 to late 2014.

Date Price of RON 97 per liter Price of RON 95 perliter
September 2013 RM2.85 RM2.10
January 2014 RM2.80 RM2.10
March 2014 RM2.90 RM2.10
October 2014 RM2.75 RM2.30
November 2014 RM2.55 RM2.30
December 2014 RM2.46 RM2.26

 

In conclusion, a higher price doesn’t always mean better quality per se. In this case, it very much depends on the requirements of your vehicle. The rest is just marketing. Now tap yourself on the back for reading this article and minding your wallet, it takes effort, but ignorance is not bliss

Ron 95 and Ron 97 to go down by 35 cents, Diesel 30 cents

petrol price

The government has confirmed that Ron 95 and Ron 97 to go down by 35 cents ,while Diesel 30 cents as of January 2015. The Ron 95 will be priced at RM 1.91 per litre, Ron 97 will be priced at RM 2.11 per litre while Diesel will be priced at RM 1.93 per litre.

According to Minister Datuk Seri Hasan Malek, the price of petrol will continuously be monitored and adjusted as per implementation of fuel floating mechanism that effectively removes all petrol subsidy on December 2014.