We now know the newly floated price for RON 97 petrol, which is RM2.66 per litre, or 19 sen higher than the RM2.47 mark maintained since the fourth week of March. Meanwhile, the mass market RON 95 grade has been maintained at RM2.20 per litre, while diesel remains at RM2.18 per litre.

What many might not realise is that at current rates, RON 95 and diesel is being subsidised by the government, as global oil prices have been on the rise of late. Now, finance minister Lim Guan Eng has revealed the quantum of subsidy.

According to Lim, the government will be subsidising 33 sen for every litre of RON 95 and diesel this week. Without the subsidy, pump prices for RON 95 and diesel would have been RM2.53 and RM2.51 per litre, respectively. The minister added that global crude oil prices have reached US$76 per barrel, while refined petrol and diesel products are currently priced between US$87 and US$88 per barrel.

The federal government has allocated RM3 billion until the end of 2018 to finance the subsidy and to maintain the retail pump price of RON 95 and diesel for the rest of the year. Reintroducing fuel subsidies was part of Pakatan Harapan’s manifesto.