RON95 petrol price to be revised next month

A price revision of all petroleum products will
determine whether the prices will be maintained
or increased, says the government.

IPOH: Come next month, the government will review prices of all petroleum products, including the RON95 petrol, before deciding to retain them or otherwise, Domestic Trade, Cooperative and Consumerism Minister Ismail Sabri Yaakob said today.

He said the price revision to be conducted by the ministry and other agencies such as the finance ministry and the Performance Management and Delivery Unit (Pemandu) would determine whether prices would be maintained or increased, depending on the government’s subsidies.

“According to Pemandu’s subsidy rationalisation plan, there will be a revision every six months for subsidies on all products.

“The last revision we had for diesel, LPG and RON95, was in December, last year.

“This means that a mid-year revision will be carried out this month or early June… I can’t say what will happen but the revision will take place and the government’s subsidy burden is high,” he told reporters after officiating at the Ipoh Umno division delegates meeting here today.

He said this when asked on the current price of RON95 petrol, following the increase in price of On April 2, the price of RON97, which was floated according to current petrol prices, rose 20 sen to RM2.70 per litre, following the Middle East crisis, while the price of RON95 increased by five sen to RM1.90 per litre last December.

Ismail Sabri said that although he had previously stated that petrol prices would not go up at the moment, it did not guarantee petrol prices would stay the same forever, because the government was already burdened with subsidies for petroleum products.

“Last year, the government’s subsidy for petroleum products was RM8 billion when world fuel prices shot up, and we don’t see signs that it will drop. If this continues, the government will bear RM18 billion in subsidies this year, an increase of RM10 billion,” he said.

He said that should subsidies be reduced, the RM10 billion could be used to build more schools, village roads, housing projects and educational aid.

- Bernama