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The BMW Range
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V-Power - Hmmmm.....
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<blockquote data-quote="Schwepps" data-source="post: 322368" data-attributes="member: 3592"><p>It was late last night when I posted. Let me be a bit more precise now.</p><p></p><p>The component costs of the APM are fixed. The floating element is the product cost, which is based on a standard formula for each grade and is a function of global benchmark oil price. The balancing figure in this equation is the subsidy or duty. When the pump price was raised in August, the subidy dropped. Then when oil prices dropped, the subsidy turned negative and the govt was collecting duty. Hence the pump price reductions in the past few months. The govt has been practising a managed float all this while.</p><p>See <a href="http://www.themalaysianinsider.com/index.php/malaysia/12622-malaysians-are-now-paying-petrol-tax-" target="_blank">http://www.themalaysianinsider.com/index.php/malaysia/12622-malaysians-are-now-paying-petrol-tax-</a></p><p></p><p>The margins are fixed for oil companies at 19 sen/lit and for dealers at 12 sen/lit, regardless whether it's Regular, Super or V-Power. Neither the oil companies nor the dealers make a single sen more or less from the price hikes, drops, or selling higher grade petrol.</p><p>See <a href="http://nst.com.my/Current_News/NST/Friday/National/2407843/Article/pppull_index_html" target="_blank">http://nst.com.my/Current_News/NST/Friday/National/2407843/Article/pppull_index_html</a></p><p></p><p>Only Shell can offer V-Power because only Shell has the process technology in its Bukom refinery to produce this blend. The others don't have access to it because they're buying base fuel from Petronas, especially in the Klang Valley. Even the other big player here, Exxon Mobil, has exited the refining sector, so even Esso is pumping at KVDT. The volumes for V-Power are too small for Petronas to invest in upgrading the refinery technology here. Besides which most countries are moving away from higher grades, and indeed we should be moving towards alternative fuels instead. Even for Shell, it's only a brand differentiation play, as V-Power is a very small proportion of their sales.</p><p></p><p>V-Power vs Super: As a user, I find that there is an FC and torque inprovement, but they're not big enough improvements to justify the present cost differential of 45 sen. But I still use it because of emotional factors. <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite8" alt=":D" title="Big Grin :D" loading="lazy" data-shortname=":D" /></p></blockquote><p></p>
[QUOTE="Schwepps, post: 322368, member: 3592"] It was late last night when I posted. Let me be a bit more precise now. The component costs of the APM are fixed. The floating element is the product cost, which is based on a standard formula for each grade and is a function of global benchmark oil price. The balancing figure in this equation is the subsidy or duty. When the pump price was raised in August, the subidy dropped. Then when oil prices dropped, the subsidy turned negative and the govt was collecting duty. Hence the pump price reductions in the past few months. The govt has been practising a managed float all this while. See [url]http://www.themalaysianinsider.com/index.php/malaysia/12622-malaysians-are-now-paying-petrol-tax-[/url] The margins are fixed for oil companies at 19 sen/lit and for dealers at 12 sen/lit, regardless whether it's Regular, Super or V-Power. Neither the oil companies nor the dealers make a single sen more or less from the price hikes, drops, or selling higher grade petrol. See [url]http://nst.com.my/Current_News/NST/Friday/National/2407843/Article/pppull_index_html[/url] Only Shell can offer V-Power because only Shell has the process technology in its Bukom refinery to produce this blend. The others don't have access to it because they're buying base fuel from Petronas, especially in the Klang Valley. Even the other big player here, Exxon Mobil, has exited the refining sector, so even Esso is pumping at KVDT. The volumes for V-Power are too small for Petronas to invest in upgrading the refinery technology here. Besides which most countries are moving away from higher grades, and indeed we should be moving towards alternative fuels instead. Even for Shell, it's only a brand differentiation play, as V-Power is a very small proportion of their sales. V-Power vs Super: As a user, I find that there is an FC and torque inprovement, but they're not big enough improvements to justify the present cost differential of 45 sen. But I still use it because of emotional factors. :D [/QUOTE]
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