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.