Demand and supply

Why is the oil price in Malaysia is high?

Hi, I’m just a boy who wondering why the oil price in Malaysia is  high. I’m a Business student in a private university somewhere in Subang Jaya. I’m here to debate or discuss about the oil price in our beloved country Malaysia. Our prime minister Datuk Seri Najib Tun Razak said that our oil price is way cheaper than Indonesia, Singapore, and Thailand. From my point of view, yes our oil price is cheaper than those country that Datuk Seri Najib said but the thing is, he’s comparing the oil price with those country that import oil and gas whereas Malaysia is a country that PRODUCE and EXPORT oil and gas.

The Malaysian government should compare our oil price with country such as Qatar, Oman, Saudi Arabia, Venezuela and others country that also produce oil. In 2009, Malaysia is the second largest exported of LNG in the world after Qatar exporting over 1 tcf of LNG, which accounted for 12 percent of total LNG exports Japan, South Korea, and Taiwan were the primary purchases. The current oil price in Malaysia in U.S dollar is US$0.543 per litter. Maybe to all of you it is quite cheap but it is not. The current oil price in Saudi Arabia is US$0.127 and Venezuela US$0.047 per litter.

According to http://www.malaysiakini.com/letters/47888 it said that we Malaysian paying less for petrol. Yes! If you compare them to Japan , Hong Kong, United State, Canada and so on. Now the price per gallon in Malaysia is US$2 meanwhile in Saudi US$0.61, Iran US$1.44 and Venezuela US$0.08 per gal gallon

Petronas is making millions of dollar each year but still the oil price keep increasing year by year. Petronas was ranked by Fortune as the 80^th largest corporation in the world in 2009 and the 13^thmost profitable. So why is the oil price in our country is high? What seems to be the problem?