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Petrol price expected to increase by 10sen
KUALA LUMPUR (Feb 21, 2010) : The government is expected to announce a price increase of 10sen a litre for RON95 petrol and diesel when the new fuel price mechanism is revealed in mid-March, Sin Chew Daily reported today.
The price of RON97 will also be increased but there is no decision yet on the quantum.
RON95 is currently retailed at RM1.80 a litre, RON97 and diesel at RM2.05 and RM1.70 a litre respectively.
Finance Ministry sources said the government has decided to raise fuel prices as it cannot provide more subsidy needed to maintain fuel prices at current levels following a spike in global crude oil prices.
The government believes an increase of 10sen a litre is acceptable to the public.
The sources also told the daily the government has yet to come up with a fuel price mechanism that is acceptable to all quarters, and as a result it may put off or may even be forced to abandon some new measures that are already in the pipeline.
“Plans were afoot for the registration of vehicle owners and their MyKad through Maybank and petrol kiosks to begin in April under the proposed ‘one vehicle owner, one subsidy’ fuel subsidy mechanism. It looks like the plan may not take off.”
The sources said the cap on selling 20 litres of petrol to foreign cars near Malaysian borders will continue to be implemented.
Meanwhile, Petrol Dealers Association of Malaysia president Datuk Hashim Othman believes that foreign car owners will pay the market price when the new fuel price mechanism is introduced next month.
He said the government’s main intention is to provide subsidy to those who qualify for it, to protect the interest of the lower and middle-income groups as well as save on expenditures.
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