Malaysia diesel shortage: "This year, the Government is expected to fork out RM19.46bil to subsidise diesel versus RM19.5bil last year. In Malaysia, there are two parallel diesel markets – legally subsidised diesel and illegal siphoning/smuggling of subsidised diesel with their own market clientele. “This is a lucrative market as the difference between non-subisidised diesel at RM2.67 per litre and subsidised diesel at RM1.80 per litre is 87 sen per litre,” said Jimmy who is a palm oil logistics expert. He said: “The current cheaper local subsidised diesel makes it a constant target of rampant smuggling or syphoning into neighbouring countries where diesel prices are mostly sold higher than Malaysia.”It is estimated that there are 2,000 palm oil tankers in Peninsular Malaysia alone. Each tanker can carry an average 30 tonnes of CPO and processed palm oil (PPO). “In a single day, there will be a movement of about 60,000 tonnes of CPO and PPO from mills to refineries and from refineries to the ports. “Also, bear in mind that this does not include the FFB trucks which must supply the FFB to the mills every day,” explained Jaaffar. thestar.my/Business/Business-News/2013/08/05/Diesel-shortage-hits-palm-oil-sector-Millions-may-be-lost-in-income-and-refineries-shut-down-due-to.aspx
Posted on: Sat, 10 Aug 2013 05:32:17 +0000
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