We’re into the second week of floated RON 97 petrol prices now, and it has come down by six sen to RM2.60 per litre, from last week’s RM2.66. The new price will take effect from midnight till June 20.

Since it came to power, the Pakatan Harapan government has decided to maintain RON 95 petrol and diesel prices, which remain at RM2.20 and RM2.18 per litre (for Euro 2M, Euro 5 is 10 sen costlier), respectively.

Maintaining prices means subsidising, as global oil prices have been on the rise of late. Finance minister Lim Guan Eng said last week that the government is subsidising 33 sen for every litre of RON 95 and diesel at their current prices. Without the subsidy, pump prices for RON 95 and diesel would have been RM2.53 and RM2.51 per litre, respectively.

The 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. Council of Eminent Persons head Tun Daim Zainuddin said that a proposal on fuel subsidy reforms will be presented to PM Tun Dr Mahathir Mohamad as soon as this week.