Back in January, with the introduction of the weekly fuel price float system, the government had announced that the retail price of RON 95 petrol would remain capped at RM2.20 per litre even if the market price of crude pushed the pump price beyond that level.
Today, finance minister Lim Guan Eng announced that the ceiling for RON 95 has been revised to RM2.08 per litre, which means that this is the maximum consumers will have to pay if market prices push the pump prices above that price level, the government covering the difference through subsidies.
Accordingly, if world oil prices are below that level, then the weekly price of RON 95 will be cheaper than RM2.08 pre litre. There is no change to a similar cap that is in place for diesel, which is set at RM2.18 per litre.
Lim said via a statement that the decision to revise the ceiling price was agreed upon at a cabinet meeting earlier today, despite market prices for petroleum products continuing to show a trend towards increase. The statement reiterated that the price threshold will be cancelled once the targeted fuel subsidy announced in Budget 2019 is implemented sometime in the middle of the year.
The retail price of RON 95, RON 97 and diesel based on an Automatic Price Mechanism (APM) calculation will continue to be announced weekly. For the week February 23 to March 1, RON 95 is priced at RM2.08 per litre, while RON 97 is priced at RM2.38 per litre. Euro 2M diesel continues to be RM2.18 per litre, essentially its price cap, while Euro 5 diesel – which is always 10 sen more than standard diesel – is at RM2.28 per litre.
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