Yesterday, the finance ministry announced that the retail price of non-subsidised RON 95 petrol would be set at RM2.60 per litre throughout the month of October. This price will of course apply to those who are not eligible for the benefits provided by Budi Madani RON 95 (Budi95) subsidy mechanism, in which all eligible Malaysian citizens with a valid driving licence pay RM1.99 per litre for the fuel from today, September 30.
According to finance minister II Datuk Seri Amir Hamzah Azizan, the unsubsidised price is being fixed for a month to allow the public to adjust to the workings of Budi95 before it is floated based on global prices, as the New Straits Times reports.
This will not have any impact on subsidised RON 95 under Budi95, with the retail price remaining fixed at RM1.99 per litre at an allocated 300 litres per month for every eligible user.
“We will keep the RM2.60 price stable for one month to get everybody comfortable with this price. After that, similar to diesel, prices will be revised weekly under the automatic pricing mechanism, which reflects global market prices as we also need to source supplies internationally,” he said.
He said that fuel prices would follow market movements, rising when global prices increase and falling when they decline, similar to the mechanism applied to diesel. Citing the removal of blanket diesel subsidies last year, he said the retail price was RM3.35 per litre at the time but has since fallen to about RM2.93, in line with global oil prices.
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