The Government has announced that the pricing of regulated RON 95 petrol as well as diesel will be increased by 20 sen per litre as of midnight. The new price for RON 95 is RM2.10 per litre (up from RM1.90) and RM2.00 per litre for diesel (from RM1.80), effective September 3. No change has been announced for unregulated RON 97, which is currently priced at RM2.70 per litre, or that for LPG.
Prime Minister Datuk Seri Najib Tun Razak made the announcement of the price increase earlier today, saying that the move is aimed at reducing the fiscal deficit – it will save the government RM1.1 billion in the remaining four months of 2013, and RM3.3 billion on a yearly basis, according to news reports.
The PM added that despite the hike, the government is still subsidising RM0.63 sen for RON 95. This makes the actual price of RON 95 without subsidisation RM2.73 per litre at present.
In August, the actual pricing for RON 95 was RM2.79, with government subsidisation amounting to RM0.89 sen. The subsidy for diesel in August was RM0.93 sen, with actual pricing for a litre of diesel being RM2.73.
The intent to raise the price of RON 95 and diesel isn’t new news – even as early as May 2011, the government had already stated that there were plans to review the pricing on a regular basis, and that there was no guarantee that petrol prices would stay the same forever, since it was being burdened with subsidies for petroleum products. In Budget 2012, it was announced that petroleum subsidies would continue as is.
Back in May, a rumour began circulating about a price hike for both RON 97 and RON 95, but was proved to be just that. The rumour had suggested the pricing of both market float RON 97 would be increased by 80 sen for RON 97 to RM3.70 and by 40 sen for RON 95 to RM2.30.
The last time a price adjustment was made was in May, with RON 97 – which works on a managed float, with pricing determined according to market forces – having its retail price decreased by 20 sen to RM2.70 per litre. As for RON 95, the RM1.90 price has remained in place since December 2010.
The photos of the petrol stations were taken as of 7.30 pm tonight. Expect the queues to tank up to get longer and tempers, shorter. Be patient if you’re lining up. Then again, you could just go for dinner – the savings for that tank of fuel tonight, if you’re putting in 50 litres, is just RM10.
Looking to sell your car? Sell it with Carro.
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AI-generated Summary ✨
Comments express mixed sentiments about the fuel price increase, with some perceiving it as a necessary move to reduce government subsidies and balance the economy, while others criticize it as selfish and detrimental, especially given Malaysia's resource wealth and production of oil. Many mention that oil prices are influenced by global markets and that the ripple effect will cause prices of other goods to rise. Several comments criticize government inefficiency, corruption, and cronyism for state financial issues and argue that subsidies are a myth, given Malaysia’s own oil reserves. Off-topic debates about class, race, and political allegiances are prevalent but irrelevant to the main discussion. Overall, the tone includes frustration, resignation, and calls for better management, with some supporting the price hike as a step towards fiscal responsibility.