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(CNA-Bernama) Malaysia to scrap RON95 petrol subsidy from Dec 1

12/12/2018



Malaysia on Friday (Nov 21) announced that from Dec 1, the price for its lower grade RON95 petrol will no longer be subsidised. Instead, the fuel price will be determined by a managed float.

The domestic trade and consumer affairs minister Hasan Malek told a news conference that based on an automatic pricing mechanism in the first two weeks of November, the retail price for RON95 petrol should be slightly lower than the current fixed price of RM2.30 (US$0.69) per litre. 

Going forward, he said the government will let the price for RON95 petrol to fluctuate in accordance with global fuel prices as well as the foreign exchange rate in the previous month. A similar mechanism was used for the pricing for higher grade petrol RON97 that was in force since July 2010.

"This means that if the price of crude oil increases, the price of RON95 will also increase and vice-versa," Hasan said, according to Bernama.

after abolish subsidy, prediction from govt:

RON95 : RM2.58 (increase RM 0,28)

RON97 : RM2.55