It’s confirmed – the government (via the Prime Minister’s Office) have decided to increase the price of various items in the country via the reduction of subsidy. These subsidy cuts are supposed to save the government RM750 million a year. The government claims that even after these cuts it will continue to spend about RM7.82 billion a year on fuel and sugar subsidies.
Word is that this is just the first in a round of many more subsidy cuts to come, which means the government has implemented some kind of incremental subsidy reduction plan similar to Idris Jala’s proposed PEMANDU plan.
- RON95 petrol price will increase by RM0.05 to RM1.85.
- RON97 petrol will be put on a ‘controlled float’. I’m not sure what the price will be after midnight. Will it be up by RM0.05 to RM2.10 per litre or will it go up by a larger margin?
- Diesel will go up by RM0.05 as well, which means the diesel price that you and me will be able to get at the pump will be RM1.75 per litre. However the government also says the RM0.05 hike is for all sectors so fishermen and etc will feel the hike as well.
- LPG Natural Gas will go up by RM0.10 to RM1.85 per kg.
- Sugar will go up by RM0.25 per kg to RM1.75.
Seriously guys, based on an average full tank of 50 litres, you’re only going to save RM2.50 if you rush to the pumps to fill your motor vehicle up today. It’s not worth it, please don’t clog up the fuel pumps and the roads around the pumps and make the roads a living hell for less calculative motorists!