11th February 2021 - 2 min read
The government has revised the ceiling prices for RON95 petrol and diesel to RM2.05/litre and RM2.15/litre respectively. The new retail price caps are 3 sen lower than the ceiling prices that were previously introduced in February 2019, which were RM2.08/litre for RON95 and RM2.18/litre for diesel.
The ceiling prices mean that the retail price of petrol in Malaysia will remain at the capped price even if the market price of RON95 and diesel go over RM2.05/litre and RM2.15/litre. If the real market price goes over the determined price cap at any given week, the government will bear the difference through subsidies.
According to a statement by the Ministry of Finance, the decision was made based on the trend of sharp price increases of petroleum products following rising global demand for oil. “The government is committed to lowering the cost of living of the rakyat and will constantly observe the effects of changes in global oil price while taking the appropriate steps to balance the government’s subsidy liabilities with the need to preserve the welfare and well-being of the rakyat,” the statement read.
The retail price of RON95, RON97, and diesel will continue be set weekly according to the Automatic Price Mechanism (APM) and announced every Friday.
(Source: Ministry of Finance)
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