Finance minister Lim Guan Eng has announced that from January 1, 2019, fuel prices, including for RON 95 petrol, will be floated and set on a weekly basis, according to reports by The Edge and Malaysiakini.
Since May 30 this year, the price of RON 95 petrol has remained unchanged at RM2.20 per litre, and the same applies to diesel as well – Euro 2M diesel retails at RM2.18 per litre, while Euro 5 diesel goes for RM2.28 per litre.
However, the price of RON 97 continued to be floated according to market prices from June 7, initially adjusted on an average weekly basis before moving on to an average monthly basis from September. For the month of December 2018, RON 97 is being sold at pumps for RM2.50 per litre.
The switch back to a weekly format is claimed to be a positive move, with Lim saying, “this will allow consumers to benefit faster from reductions in the fuel prices.” He adds that based on the declining trend of global crude oil prices currently, the government will adjust fuel prices to be lower from January 1, 2019.
However, should global crude oil prices rise, the government will maintain the price of RON 95 petrol at RM2.20 per litre and diesel at RM2.18 per litre. This will remain until the implementation of targeted fuel subsidies announced during the tabling of Budget 2019. Lim noted that RM5.82 billion has been spent to subsidise petrol products from May to November this year.
What are your thoughts on the government’s decision to return to weekly fuel price announcements?
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