The government has set a ceiling price for RON95 and diesel to protect consumers from any potential impact following the rise in crude oil prices.
In a statement, finance minister Tengku Zafrul Aziz said the ceiling price for RON95 has been set at RM2.05 per litre while diesel is capped at RM2.15 per litre.
Fuel prices have been steadily increasing over the past few weeks. Presently, 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.”
He said the government will subsidise the difference if the retail price for RON95 or diesel exceeds the ceiling price.
“This decision was made based on the upward trend in petroleum product prices following the higher demand for crude oil in line with the reopening of various economic sectors around the world.”
Tengku Zafrul said global oil prices are also affected by the roll-out of Covid-19 vaccines in countries around the world.
“The government is committed to reducing the cost of living and will continue to monitor changes in crude oil prices and take the necessary measures to balance the cost of subsidies.”