There will be some massive changes to the grade and price of fuel we buy at the pumps in Malaysia this year. First up is the previously announced phasing out of RON92 fuel for a new RON95 fuel grade, which will be subsidised as the government assumes this is the grade that is suitable for the majority of users in Malaysia.
The second major change is a switch to a floating system for RON97 petrol according to international oil prices from July 2009 onwards. It was not indicated whether this would be a daily, weekly, twice a month or monthly float. Since prices are now determined twice a month perhaps it may change to a more frequent weekly float. RON97 is considered by the government to be a “premium fuel’ and thus will not be subsidised. Petrol retailers also told Business Times that not only will RON97 not enjoy subsidies, it might even be taxed!
Lastly, diesel in Malaysia will be upgraded from current MS123 standards to Euro 2M standards.