RON_95_vs_RON_97_Fuel_Test_Malaysia_ 023

Accusations of the government making a profit from hiking the prices of all fuel types by 15 sen per litre this month are baseless and are only meant to confuse the public, according to second finance minister Datuk Johari Abdul Ghani as reported by Berita Harian.

The official told the Malay language daily that the rise in prices has been derived from global crude oil prices, which have climbed sharply since October. As such, he claimed, the 15 sen increase is in line with the managed float system introduced in December 2014.

Back then, the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) explained that under the new structure, it would monitor the average fuel prices for the first 19 days of each month to see if it warranted a revision. If there was a marked change, the average price of the last 10/11 days of the month would dictate the pump prices for the following month.

“Crude oil prices last month have been fluctuating, from US$43 (RM180) to US$54 (RM226) a barrel,” Johari said. Fuel prices now stand at RM1.95 per litre for RON 95, RM2.30 for RON97 and RM1.90 for diesel, up from RM1.80, RM2.15 and RM1.75 per litre respectively in October.

Johari added that the prices of fuels are influenced by a number of factors, including the foreign exchange which fluctuates according to the flow of the global economy. “We use a “one month behind” mechanism, so the fuel prices for December will drop if global crude oil prices also drop this month,” he said.