Govt caps RON95 price at RM2.05 per litre, RM2.15 for diesel to protect users from global oil price hike

A RON95 fuel pump is pictured at a Shell petrol station in Chow Kit, Kuala Lumpur November 3, 2020. — Picture by Hari Anggara
A RON95 fuel pump is pictured at a Shell petrol station in Chow Kit, Kuala Lumpur November 3, 2020. — Picture by Hari Anggara

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KUALA LUMPUR, Feb 10 — Putrajaya has capped the retail price for RON95 at RM2.05 per litre and RM2.15 per litre for diesel, in an effort to protect users here from the global price hike.

In a statement today, Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz said that the the ceiling price level of RM2.05 per litre for the RON95 petrol and RM2.15 per litre for diesel is much lower than the price limit implemented by the government earlier in 2019, which was at RM2.08 per litre for RON95 and RM2.18 per litre for diesel.

The announcement, however, did not mention how much this move would cost the government. 

“The government will cover the difference in real market prices with retail prices set on a weekly basis through subsidy allocation.

“This decision was taken based on the actual market price trend of petroleum products which is growing, following the increase in world crude oil demand, and also influenced by the reopening of various economic sectors around the world.

“The global oil price trend is also influenced by the Covid-19 vaccination plan which began launching gradually around the world. Malaysia itself will launch its National Immunisation Programme starting at the end of February 2021,” he added.

Tengku Zafrul said that the government remains committed to reducing the general cost of living and will always monitor the effects of changes in world crude oil prices and take appropriate steps to balance government subsidy liabilities with the need to continue preserving the welfare and well-being of the people.

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