Price of RON 95 at RM1.80 from Tuesday (Update)
KUALA LUMPUR: The newly introduced RON 95 fuel is now priced at RM1.80 - five sen higher than the previous RM1.75.
Meanwhile, RON 97 is upgraded as a premium product and has gone up to RM2.05 from RM1.80.
Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said the new prices were decided based on the current method of Automatic Pricing Mechanism (APM).
“Although the price is now 5 sen higher, the Government is still subsidising 33.81 sen per litre (of RON 95) which is equivalent to RM304mil monthly,” he told reporters after the launch of Primax 95 by Petronas here on Monday.
Currently, the Government is subsidising RON 97 by 42.72 sen per litre.
The cost for RON 95 went up 102% from USD$ 40.75 per barrel to USD$ 82.30 in December last year and August respectively.
“If there is any changes in the global prices, we would revise it accordingly. It is up to the Economic Council to decide.
“RON 95 also adheres to the EURO2M specification where it can lessen pollution,” said Ismail Sabri, adding that consumers would get quality petroleum at a subsidised price.
With the new pricing, Ismail Sabri added that RON 92 was phased out from the market as the usage was only 5% from total petrol sale in the country.
In April last year, then Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said the Government was considering the use of petrol with higher research octane number (RON) to reduce fuel subsidies without hurting the lower-and-medium income groups.
A higher octane number means higher resistance to engine “knocking”. “Knocking” could possibly damage the engine over time.
Petrol Dealers Association of Malaysia president Datuk Hashim Othman said petrol stations could easily recalibrate their pumps to adjust to the new price.
“With technology, all you need to do is push some buttons. It is almost automatic in most stations now, except for a few in the rural areas which are still using the manual system,” he told The Star.
He added that petrol dealers would make a slight gain with the price increase as they had bought their current stock at the old price.
“It is only a little as the price increase is small,” he said.