Fuel price increase as RON95 goes on sale

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PETALING JAYA: The environmentally-friendly RON95 petrol will be sold at RM1.80 and the higher grade RON97 at RM2.05 beginning today.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob, in making the announcement yesterday, said the RON97, which was sold at RM1.80 until yesterday, is premium grade.

He also said the sale of RON92 would be discontinued as only five per cent of motorists used it.

It was earlier announced that RON95 would be sold at RM1.75 while the premium RON97 would be sold at RM2 from this month. Many petrol stations have already started selling the two grades at RM1.75 and RM2, respectively, since mid-last month.

Ismail said the upward revision of the prices was necessary as the global crude oil price had doubled since the announcement by former minister Datuk Shahrir Abdul Samad in March that RON95 would be sold at RM1.75.

"He made the announcement based on last December's price.

"The global crude oil price has increased 102 per cent since then," Ismail said at the Nationwide RON95 Launch here.

He said the government expects to reduce the petrol subsidy by RM420 million per year with the introduction of RON95 as its subsidy price was lower, 38.81 sen per liter, compared with the subsidy for RON97, which was 42.72 sen per litre.

"In fact, the price of RON95, going by world markets, is RM1.89 per litre. But the government does not want the people to feel the rise so it has set the price at RM1.80."

He also said there was no guarantee that fuel prices would not be revised further this year.