Fuel Economic

Posted by Pierce in business | 2 Comments

no pun intended.

one has to consume 2400 litre of premium fuel in order to deliver the following to certain part of Sarawak.
– 325 litre of Diesel (RM 585)
– 200 litre of RON95 (RM 360)
– 4 cylinder of 15 kg cooking Gas (RM 108)
– 20 litre of kerosens (Could hardly find them nowadays from Gas Station @ total RM 66)
– 30 kg of dried food item (RM 200)
– 1 kg of medical supply (RM 500)
– 2 human beings (priceless)

The premium fuel for the flight is sold at RM 3.792 per litre.

Total consumption is RM 9,100.80

Take per Ringgit average of total RM 1,704.00 plus the charges of RM 200 per head, each Ringgit needs RM 4.15 to transport.

This would mean that the cost for the 325 litre of diesel which cost RM 585 is now RM 3,012.75

That is what in the flight manifest every other day. While people in Kuala Lumpur or Kuching is enjoying a cylinder Gas at RM 27 each, it is a different story over there. This cost RM 189.05 per cylinder.

I have read a recent article on how a politically linked lady up north on the success story of such operation. one could only think that linking the place I didn’t mention above to Miri would cost such that people in that town could hardly able to afford any of them with their standard income of around RM 100 per month.

Oh, one thing I did not include in the calculations is the cost of operation of the airline that requires some profits (usually 200% of the fuel cost), and cost of maintenance (usually another 200% of the fuel cost and depending on the type of plane.) With this in mind, each cylinder Gas is now RM 945.25.

I know for a fact that the transport company is giving it’s share on CSR by reducing the cost to 50% making the cost of cylinder now at RM 472.63.

I for one will not pay that price for a cylinder gas which I could easily take from the shop at RM 27 each.

There is an exception I know in this calculation, The company is calculating this at per Ringgit Cost Average and not by the Per KG average.

On one hand, it is good to know that someone is making profits out of the O&G Biz, but on the other hand, the O&G may not last the distance. Last check, our oil reserves is going zero in 20 years and 9 month. This would mean that the cost is going to go up as time goes by.