RON 95 petrol price will be capped at RM2.20 – LGE

RON 95 petrol price will be capped at RM2.20 – LGE

The new weekly fuel price float system – which was supposed to go live today but is now scheduled to start later this week – will see RON 95 petrol prices capped at RM2.20 per litre, even if crude market price pushes the pump price beyond that level. This was revealed by finance minister Lim Guan Eng, reported by The Star.

Lim said the price float system was different from the previous government’s. “People will be paying less when petrol price drops but when it increases, they need not worry as any increase exceeding RM2.20 will be subsidised by the government,” he told reporters in Bukit Gelugor yesterday.

He explained that the implementation of the weekly price float was delayed because of objections from the Petrol Dealers Association of Malaysia (PDAM), adding that prime minister Tun Dr Mahathir Mohamad would hear the group out first before deciding on the prices, which would be announced after a cabinet meeting today.

RON 95 petrol price will be capped at RM2.20 – LGE

PDAM president Datuk Khairul Annuar Abdul Aziz stated his case last week. “As dealers, we have no control over the price. Say we buy petrol today, if the government changes the price tomorrow, we have to follow that even if we had bought (the fuel) at a higher price. Unlike other businesses where they can still keep a margin, we can’t, as we are at the mercy of the government. So, let’s say the price goes down every week, we are then hit (with losses) four times a month,” he said.

“So we can’t even buy less stock; our hands are tied. If the reduction is gradual and doesn’t eat up our margin on a daily basis, then it would be okay but the government needs to discuss with us. It’s right that the government wants to give that (lower fuel prices) to the rakyat and we are all for that, but if we continuously sell at a loss, matilah (we will suffer),” he said, adding that the dealer margin is 10 sen per litre for petrol.

This system won’t be for the long run, though – it will only be in place until a fleet card system is introduced for B40 (bottom 40% lower income) Malaysians to buy subsidised RON 95 petrol. This impending end of the current blanket fuel subsidy was announced in Budget 2019, but the mechanism and criteria is yet to be finalised.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • AI-generated Summary ✨

    Comments on the blog post express mixed reactions to the petrol price cap at RM2.20, with some critics disappointed, claiming promises are unfulfilled and questioning the government's transparency and consistency. There is skepticism about the effectiveness of the subsidy and price control measures, with suggestions to adopt flexible, real-time pricing systems like Australia’s. Several comments criticize political figures, especially Guan Eng, for flip-flopping and inadequate solutions, and some align the issue with broader dissatisfaction over government corruption and unfulfilled promises. Supporters or neutral commenters mostly welcome the cap but question whether it will be sustainably maintained. Overall, sentiments reflect frustration, distrust, and political criticism, with a common desire for more transparent, effective, and fair fuel pricing policies.

  • Petrol prices have went below Rm2.00 currently. So who is subsidising who right now, Nobita Minister?

    Well-loved. Like or Dislike: Thumb up 125 Thumb down 2
    • When bn put that rm2.20 world stock market is 85usd per barrel…now the price going down 52usd per barrel…we are not interesting with the upper high price later…we want to know what our price current situation with 52usd..how long will we pay rm2.20??then u will apung that price in julai19???what the point is apung if u said rm2.20 is capped rate..where all the 3bil subsidi will go then??

      Well-loved. Like or Dislike: Thumb up 51 Thumb down 1
    • Kancil Hybrid on Jan 02, 2019 at 11:41 am

      Bila naik dipersalahkan kerajaan. Bila turun kenapa tak puji kerajaan? Ada yg dah turun. Kangkung dulu naik sekarang ni dah turun. Ada yg dah yurun.

      Like or Dislike: Thumb up 4 Thumb down 37
      • Bila ada turun? Kangkung harga pun sudah melonjak tinggi sial.

        Like or Dislike: Thumb up 38 Thumb down 2
      • Sick & Tired on Jan 02, 2019 at 2:27 pm

        This is Penipu Harapan

        Like or Dislike: Thumb up 38 Thumb down 1
      • YB Albert Kunta on Jan 02, 2019 at 4:44 pm

        Kanchil hybrid,
        Tun said ‘no oppression,u can voice out’as long as non racial comments.
        So ,I reckon u r comfortable with kangkung(which is rising in prices).So u continue eating kangkung lor.
        But we want to eat better food by being prudent with our money.PH wants to start Protiga…u want to continue eating kangkung,while your taxdollars are used to pay cronies as r & D grants?

        Like or Dislike: Thumb up 14 Thumb down 1
    • Pakatan Kuat Tidur on Jan 02, 2019 at 2:05 pm

      the Pakatan govt only sleeps. they never fulfilled their promises!

      Never make the rakyat angry!

      Well-loved. Like or Dislike: Thumb up 51 Thumb down 1
    • Darren on Jan 02, 2019 at 5:25 pm

      Well said, John! You have smashed the glass made heart of Pakatan hardcore supporter man, but I agree you words. Lolz.

      Like or Dislike: Thumb up 9 Thumb down 1
  • I’m sorry Mr. minister… But I think petrol price should be capped at RM1.50. If you do know how to do it, please refer Mr. Tony Pua. Or you may find his video on youtube.

    Well-loved. Like or Dislike: Thumb up 94 Thumb down 4
    • Redselipar on Jan 02, 2019 at 12:09 pm

      Tried and done, only 1mdb videos on youtube.

      Like or Dislike: Thumb up 7 Thumb down 10
      • Optimus on Jan 02, 2019 at 2:24 pm

        The power of Murican paid influence in social media, and they complain the Russians were doing the same thing.

        Like or Dislike: Thumb up 6 Thumb down 1
    • RM1.50/L petrol mana? on Jan 02, 2019 at 12:17 pm

      Pua, Rafizi, Khalid Samad. All their videos are trending top of Youtube.

      Like or Dislike: Thumb up 34 Thumb down 0
    • I think petrol price should be capped at RM1.50 since 2015 ,

      Like or Dislike: Thumb up 7 Thumb down 7
    • 25or6t04 on Jan 02, 2019 at 1:46 pm

      PH government never promised fuel price at Rm 1.50..they promised return of fuel subsidy and targeted fuel subsidy for lower income earners in Buku Harapan. The old Pakatan Rakyat alliance did promise RM1.50, but that was way back in 2013. Get your facts right.

      Like or Dislike: Thumb up 10 Thumb down 51
      • JOACHIM on Jan 02, 2019 at 1:54 pm

        Same wine, different bottle.
        Same politicians, same promises, only different name.
        Same promises still applies.

        Like or Dislike: Thumb up 28 Thumb down 1
      • I didn’t said the old Pakatan Rakyat alliance did promise RM1.50… I just give a suggestion, which petrol price should be capped at RM1.50. why so upset? LOL :D

        Like or Dislike: Thumb up 17 Thumb down 3
        • Jeremy on Jan 02, 2019 at 3:58 pm

          Pakatan pipel now so antsy and defensive about those promises their politicians made.

          Like or Dislike: Thumb up 18 Thumb down 0
          • Rakyat Malaysia on Jan 02, 2019 at 7:18 pm

            When they cannot fulfill their promises, they taichi. This is PH.

            Like or Dislike: Thumb up 14 Thumb down 0
  • Daddykassi on Jan 02, 2019 at 10:58 am

    U turn again! What next?

    Well-loved. Like or Dislike: Thumb up 55 Thumb down 2
    • Tax the pipu even more. What else?

      Like or Dislike: Thumb up 27 Thumb down 0
    • Daddyjohn on Jan 02, 2019 at 12:44 pm

      Next is Proton sales will decline

      Like or Dislike: Thumb up 4 Thumb down 5
      • Not even launch yet PEROTIGA will surely failed ( F9) . – will surely ask for TONGKAT later on.
        Proton aka Geely will never failed as Geely will not allowed it to happen as Geely is a big auto conglomerates with thriving sales every where and their products are highly desirable and sought not only to the younger buyers but also to new buyers.

        Like or Dislike: Thumb up 4 Thumb down 0
    • Thanos on Jan 02, 2019 at 12:46 pm

      Tax holiday. When next one?wanna get G20 330i

      Like or Dislike: Thumb up 3 Thumb down 0
    • Amran on Jan 02, 2019 at 2:49 pm

      Proton 2.0.. What next?

      Like or Dislike: Thumb up 0 Thumb down 1
  • lilytan on Jan 02, 2019 at 11:03 am

    Please quit beating around the bush. Just reduce the much overdue fuel price.

    Well-loved. Like or Dislike: Thumb up 54 Thumb down 0
  • Kak Limah on Jan 02, 2019 at 11:18 am

    “Hidup Guan Eng!!”

    Like or Dislike: Thumb up 6 Thumb down 26
    • “Matilah poket rakyat!!”

      Like or Dislike: Thumb up 30 Thumb down 1
    • Khalid on Jan 02, 2019 at 2:52 pm

      Guan Eng selalu ” Flip Flop “. . cakap lain orang Cara salah tapi dia sendiri pun ikut orang Salah punya Cara Dan idealogy pulak.

      Adakah dia pandai atau bodoh . Otak Tak ada innovasi tapi mulut putar pulit .

      Like or Dislike: Thumb up 32 Thumb down 0
    • IT seems after seven months of governing, notice that Guan Eng work hard but Not Smart.

      He is very petty over small matter but not able to resolve big issues wonderfully

      By this he always give flip flop statements.

      Is he gone NUTs ?

      Like or Dislike: Thumb up 4 Thumb down 0
  • Dylan Chng on Jan 02, 2019 at 11:53 am

    Stop ******* subsiding fuel prices. Invest the money saved from fuel subsides and put into public transport. A country can survive without cars.

    Like or Dislike: Thumb up 16 Thumb down 2
  • Ben Yap on Jan 02, 2019 at 12:01 pm

    In August 2017, PDAM said that their profit margin for petrol is 12.19 cents per litre. How come now they claim it’s 10 cents.

    They have forgotten what they said and now try to down play the margin.

    Like or Dislike: Thumb up 16 Thumb down 3
  • Khairul Annuar Abdul Aziz needs to shut up. What happens when they buy the fuel cheap today and the prices go up tomorrow, they still earn, correct?

    I am surrounded by idiots.

    Like or Dislike: Thumb up 18 Thumb down 0
  • This is a disappointing decision. Price is below MYR2/L with crude dipping. Probably when the term is up.. no chicks will hatch.

    Like or Dislike: Thumb up 13 Thumb down 0
  • Vincent on Jan 02, 2019 at 12:12 pm

    No worry Minister.. we rakyat learned! We will not take into consider whatever statement you given, until it really happen, and we also will bear in mind that it could be u turn again .. few days after it been implemented!

    Like or Dislike: Thumb up 33 Thumb down 0
  • Smoker on Jan 02, 2019 at 1:00 pm

    As Always this circus administration love to show clown skill at any level..

    Like or Dislike: Thumb up 30 Thumb down 0
    • Hafiz Hisham on Jan 02, 2019 at 2:57 pm

      The Netflix generation voted in clowns and jokers into the government because they were entertaining to watch them fall & fail.

      Like or Dislike: Thumb up 9 Thumb down 3
    • Smoker Tak Boleh Rokok Lagi on Jan 02, 2019 at 4:17 pm

      Still much better than having a corrupt PM stealing money from the rakyat who says he got a donation from some Arab prince when exposed.

      Like or Dislike: Thumb up 4 Thumb down 22
      • Tun Pirate King on Jan 02, 2019 at 5:31 pm

        Better to get donation from some Arab prince than to get 22 years of donation from the rakyat! That’s not called donation in English dictionary, that’s called stealing! The rakyat were fooled to elect the Pirate king back!

        Like or Dislike: Thumb up 17 Thumb down 0
      • Yes, until today still cannot put that guy in jail..

        Like or Dislike: Thumb up 8 Thumb down 0
    • Greasemonkey on Jan 04, 2019 at 12:21 pm

      Hahahaaaaa…..

      Like or Dislike: Thumb up 0 Thumb down 0
  • ricky on Jan 02, 2019 at 1:10 pm

    Pakatan Hancing!!!

    Like or Dislike: Thumb up 23 Thumb down 0
  • I lost hope.

    Like or Dislike: Thumb up 14 Thumb down 0
  • Abcde on Jan 02, 2019 at 1:21 pm

    1) Let each petrol station decide and order their own petrol themselves; and
    2) Let each petrol station decide their price of petrol themselves.

    Like or Dislike: Thumb up 17 Thumb down 0
  • Rakyatsuara on Jan 02, 2019 at 2:01 pm

    Expected, you have a reasons, Rakyat have a decision, I would like you told you Mr. Lim, next election I won’t pick your gang anymore, no chance, no chance and bye bye to yours, hahaha………

    Like or Dislike: Thumb up 31 Thumb down 0
  • howLong? on Jan 02, 2019 at 2:49 pm

    if the system won’t be last until the subsidy card system implemented, why bother about floating the price and capping the fuel at rm2.20? unleast you have no plan to implement the subdidy card system any soon.

    Like or Dislike: Thumb up 10 Thumb down 0
  • Jimmy on Jan 02, 2019 at 4:45 pm

    LGE, please think of M40 as well. We also work hard for the economy but you take away the subsidy one by one. We are all effected as well…..Petrol, electricity, water for selangorian, income tax……

    Like or Dislike: Thumb up 11 Thumb down 0
    • citizenjohn on Jan 02, 2019 at 5:33 pm

      Well the whole group of M40s did vote en block for PH….

      Like or Dislike: Thumb up 4 Thumb down 0
  • Mr. Octopus on Jan 02, 2019 at 4:47 pm

    The government should be selling the fuel through the dealers and pay the dealers a fixed commission for every litre sold. This way regardless the price they still earn.

    Like or Dislike: Thumb up 3 Thumb down 1
  • Gabriel on Jan 02, 2019 at 5:03 pm

    Having regret now for putting this Finance Minister into power. The worst kind of Finance Minister…

    Like or Dislike: Thumb up 9 Thumb down 1
    • Imelda on Jan 04, 2019 at 5:48 pm

      Who make final decision or final say on fuel price revision? TUN M or Guan Eng?

      We know one of Tun M son also own PETRON , Got the picture? Very obvious.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Wont be Long on Jan 02, 2019 at 7:20 pm

    This govern won’t stay long in power, not helping the rakyat but the cronies too. Know to talk only when not in power, now totally different. Start to feel regret on supporting them. Sad sad sad.

    Like or Dislike: Thumb up 8 Thumb down 1
    • SK, Lim on Jan 02, 2019 at 9:06 pm

      Why would PH worry losing your support or even majority of rakyat support? They have 1,000,000 dupes to vote for them when next GE comes. Their leader is a master of this dark art, try to beat that.

      Like or Dislike: Thumb up 3 Thumb down 1
  • Why not have a daily / half-daily float system like what has been done ages ago in Australia/New Zealand?
    Sometimes when the price fluctuates above certain threshold during the day, the morning and evening price can be different as well.
    Every stations have their own prices and the stations nearer to the port will have cheaper petrol.
    I use the Gaspy app to know the latest prices for every stations near me, this way the petrol dealers won’t simply over-charge us because we can compare the prices.

    Like or Dislike: Thumb up 3 Thumb down 0
    • imelda on Jan 03, 2019 at 11:59 am

      Guan Eng always goes to Australia, please tell him to study and learn how the float system in Australia and New Zealand are working operated without any protest from their pump stations association .

      Do you think white man are stupid than Malaysian or the other way round.

      Like or Dislike: Thumb up 5 Thumb down 0
  • LGE cilaka!

    Like or Dislike: Thumb up 3 Thumb down 1
 

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