KUALA LUMPUR, Dec 24 — The price for RON95 petrol is expected to be cheaper next month due to the plunge of global crude oil prices, Finance Minister Lim Guan Eng said today.
Lim also announced that the government will be returning to a weekly float for the RON95 petrol price from January 1 onwards.
However, he said, if world oil prices to increase weekly, the rise in retail oil prices will be controlled and limit to RM2.20 per litre for RON95 and RM2.18 respectively for diesel.
“In line with the current oil market price decline, the government will adjust the retail price of petroleum products including RON95 to lower prices starting January 1, 2019 as the retail price of petrol products is through monthly,” he said in a statement here.
Lim also added that government currently sets fuel prices on a monthly average basis, which will only be reflected the following month.
He said the price of petrol is determined based on the formula of Automatic Pricing Mechanism which takes into account the average cost of processed petroleum products, according to reference of Mean of Platts Singapore and foreign exchange rates in the previous month.
“In this matter, the changes in the price of fuel in December 2018 will only result in a reduction in fuel prices in January 2019,” he said.
Lim also said the retail prices of fuel will be managed through targeted subsidies.
In Budget 2019, Putrajaya had announced its revised fuel subsidy system, offering a cheaper price for RON95 petrol to cars with an engine capacity of below 1,500cc and motorcycles with a capacity below 125cc starting the second quarter of 2019.
Eligible cars can receive the subsidy of up to 100 litres per month, and 40 litres per month for eligible motorcycles. The roll-out of this subsidy system has yet to be finalised.
