The government says it remains committed to subsidising RON 95 and diesel despite the increase in global crude oil prices, Bernama reports. According to prime minister Tan Sri Muhyiddin Yassin, Malaysia is currently subsidising almost 30 sen per litre for RON 95 petrol and diesel, which are now at their respective ceiling prices of RM2.05 and RM2.15 per litre for the March 18-24 week.
“This means that the government is subsidising a total of RM3 billion at the current price, he said, adding that the ceiling prices were put in place to protect consumers from the impact of fuel price hikes, which are likely to continue given the current trend.
The price cap for RON 95 and diesel has been around for a while. In 2019, the previous PH government set the ceiling price of RON 95 at RM2.20 per litre, later revising it to RM2.08 in February that year. Meanwhile, the price of diesel was capped at RM2.18.
On February 10, finance minister Tengku Datuk Seri Zafrul Aziz announced that the ceiling price for RON 95 had been lowered to RM2.05 per litre, while that for diesel was also reduced by three sen to RM2.15 per litre.
These is the maximum price consumers will have to pay for both fuels if market prices push the pump prices above that price level, with the government covering the difference through subsidies. Accordingly, if world oil prices dictate that these fuels are priced below those levels, then the weekly prices of both will be priced cheaper than the capped price.
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First of all how do you subsidy RON95 by 30 cents meaning RON95=RM2.35 vs RON97=RM2.47 (just a 13 cents difference)??
Also have you forgotten that we have been subsiding your fuel in April 2020 when the oil priced dipped to USD20 but we ended up paying ceiling price of RM1.25 which should have been RM0.70 cents instead.
It is ok. We had been subsidising anything above Rm1.50 since 2018 until 2020. Even Rm2.08 ceiling price was a joke.
From my humble umpteenth years of experience and indepth knowledge in Msian civil fiscal Dept, reinstating the GST and removed SST exemptions is the best way forward. Not taking any sides..
Ppl consume less, ppl pay less.. Agree, just gimme a Thumbs up or two…
Rich people, only child or two children consume less
Poor people, 5 – 8 children consume more
Who pays the bigger portion of GST.
They promised prices would drop after switching back from GST to SST. Mana ada! Prices remain same or went up, rakyat rugi, govt rugi, only businessmen untung. Greatest scam in the country!
Well maybe if the government were to be more transparent with refunding GST claims (which has not been an issue for SST) then maybe its fine, or else we are going back again in circles and companies will just raise prices when they can’t roll over their income and have to raise prices for our daily necessities.
Bear in mind, this is not a Zero sum game..
Govt alr provide 6 economic stimulus aid packages to the total value of RM340 billion. Namely Prihatin worth RM250 billion, Prihatin SMEs (RM10 billion), Penjana (RM35 billion), Kita Prihatin (RM10 billion), Permai (RM15 billion), and Pemerkasa (RM20 billion). So from people, return back to people…
Permain, Pemerkosa …
Rakyat terjaga. Tengkiu caring gomen terbest
Deep gratitude for beloved rulers so much prehating stimulating packages
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 which 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.
On 10th February 2021, The government has announced it is revising the ceiling price for RON 95 petrol as well as Euro 2M diesel with immediate effect.
Which is set at RM2.05 per litre for RON 95 and RM2.15 for diesel.
Norway also exports crude oil but uses that money to improve their country and up their living standards by setting up EV infrastructure. Here the Govt have to use export crude oil money to subsidise rakyat wastages on outdated ICE cars with loud exhaust.
Fully agreed. Crude oil is finite limited resources.
Norway uses that money to improve their country and up their living standards. Invest.
Malaysia uses that money to makan. And then go toilet.
Malaysia is a petroleum producing country. So another way to look at it is the government has limited the profit rom rakyat and sell it at a limit of Rm2.30 per liter. Paradigm shifted yet?
In near future Indonesians doesn’t have to complain about fuel price since they will be fully utilising EVs.
Typo in title.
One more reason to driving a tesla
Good grammar. To driving..
Where is the calculation formula?
If u dont share then people will bark non stop.
Drive economically, drive safely.
During 2008 Pak Lah tenure in Putrajaya, on KJ’s advice in PAU, RON95 priced at RM2.80 per litre. Cemerlang, Gemilang, Terbilang.
No…we subsidy government 30 cents per liter….government never publish the subidise calculation mechanism…and international crude price still cheap compare to last time
Copy paste: “Brent crude oil prices have risen by 40.7% to average US$58.67 (RM241) per barrel as of March 1 (average US$56.87 in 2020) and Brent crude oil futures surged above US$70 a barrel on March 8 for the first time since the Covid-19 pandemic began.
Besides the global vaccination drive fuelling strong global recovery and renewed fuel consumption, geopolitical tensions in the Middle East has also stirred up the geopolitical risk premium in oil markets.
Higher crude oil prices come in very handy at this time to make up for a potential shortfall in the Ministry of Finance’s (MoF) projected tax revenue collection (+14.6% to RM131.9bil) in Budget 2021. It expects corporate income tax to increase by 8.8% to RM64.6bil and personal income tax to jump by 18.2% to RM42.4bil in 2021.”