The government has revoked the petrol price control order that has restricted the maximum price of RON 95 petrol to RM2.08 per litre and diesel to RM2.18 per litre, the Malay Mail reports.

The revocation was announced in a federal gazette titled Price Control and Anti-Profiteering (Determination of Maximum Retail Price for Petrol and Diesel) (No. 8) (Revocation) Order 2020 that was dated June 3. The order itself was approved by domestic trade and consumer affairs (KPDNHEP) minister Datuk Alexander Nanta Linggi on April 10.

UPDATE: The government says that the order on ceiling retail prices of petrol and diesel is still in place and has not been revoked. In a follow-up report today (June 11), Linggi said that the ceiling price – which restricts the maximum price of RON 95 petrol to RM2.08 per litre and diesel to RM2.18 per litre – is still in effect.

The RM2.08 per litre price cap on RON 95 petrol had been introduced by the previous Pakatan Harapan government in February 2019. This would be the maximum consumers would have to pay if market prices pushed pump prices above that price level, with the government covering the difference through subsidies.

Currently, the retail price of RON 95 and diesel – which is based on an Automatic Price Mechanism (APM) calculation, and adjusted on a weekly basis – is well under the ceiling price.

For the June 6 to 12 week, RON 95 is priced at RM1.48 per litre, which has been climbing from its previous low of RM1.25 in April to mid-May, while Euro 2M diesel is priced at RM1.63 per litre. The price of RON 97 petrol, which is floated according to market prices, is currently priced at RM1.78 per litre.

The removal of the price ceiling has ramifications. It means that the price of RON 95 and diesel could go past RM2.08 and RM2.18 per litre respectively should global oil prices increase substantially in the future.