One last Friday before 2019 comes to a close, and so it’s time for the weekly price announcement for RON 97 petrol. The fuel will be priced at RM2.63 per litre for the coming week (December 28 to January 3, 2020), which is five sen up from the RM2.58 last week.
No change to RON 95 petrol, which continues to stay at its fixed price ceiling of RM2.08 per litre. It’s the same for diesel – the price of Euro 2M diesel remains at RM2.18 per litre, and Euro 5 diesel, which costs 10 sen more, stays fixed at RM2.28 per litre.
According to the finance ministry, Automatic Price Mechanism (APM) calculations show that RON 95 and diesel fuels would be priced at RM2.33 and RM2.39 per litre respectively if there were no price cap in place. It added that for the period of December 21 to 27, the government will absorb a total of RM117.06 million to subsidise these fuels.
These prices will remain effective until January 3, 2020. This is the 51st and effectively the final edition of the existing weekly fuel pricing format announced every Friday this year, and which ran from Saturday until the following Friday. This pricing mechanism and existing subsidy system will come to an end when the government begins its targeted petrol subsidy programme (PSP) for RON 95 petrol in January next year.
The introduction of the PSP means that those not eligible will be paying more for RON 95 petrol. The government has previously said that the jump from the current subsidised rate to the market price will be gradual, with talk of increasing the price by one sen per week until it reaches market price, which as stated above is RM2.33 this week.
Also, January 1, 2020 will see the official roll-out of Euro 4M RON 95 in the country. The cleaner fuel, which replaces the Euro 2M specification, is already available at all Petronas stations, and Shell has also announced its availability at selected stations ahead of the fuel’s gazetted introduction.
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