The government has decided to cap the retail prices of RON95 petrol and diesel at RM2.05 and RM2.15 per litre respectively.
Finance Minister, Datuk Seri Tengku Zafrul Abdul Aziz said the decision was made to protect consumers from the effects of any drastic spike in oil price following the rise in global oil prices.
Fuel prices have been steadily increasing over the past few weeks - Currently, RON95 retails at RM1.93 per litre, RON97 (RM2.23 per litre) and diesel (RM2.11 per litre).
“The ceiling prices for RON95 and diesel are lower compared with the ceiling prices set by the previous administration in 2019, which was RM2.08 per litre for RON95 and RM2.18 per litre for diesel,” said Tengku Zafrul.
He added that the government will subsidise the difference if the retail price for RON95 or diesel exceeds the ceiling price.
However, it’s unclear how much the move is costing the government.
Tengku Zafrul also explained that the global oil price trend was also influenced by the COVID-19 vaccination plan, which is gradually taking off around the world, with Malaysia set to roll out its National Immunisation Programme later this month.
by Kyle Roshen Jacob
