How is the RON 95 ceiling kept at RM2.05 despite market rises?

Question

Accepted Answer

The RON 95 Ceiling Price is Maintained Through Government Intervention

The retail price of RON 95 petrol has been kept at RM2.05 per litre for the period of October 5 to 11. This ceiling price is maintained by the government, even though the market price for RON 95 has risen above this level. This measure is in place to shield consumers from fluctuations in global oil prices.
Government Intervention to Stabilise Prices

The Finance Ministry has stated that the government will continue to set the ceiling price for RON 95 at RM2.05 per litre. This decision is made despite the market price for RON 95 exceeding this predetermined cap. The Automatic Pricing Mechanism (APM) formula typically dictates retail prices, but in this instance, government intervention overrides market trends for consumer protection.
Protection Against Global Oil Price Increases

The primary reason for maintaining the RM2.05 ceiling is to protect consumers from the impact of rising global oil prices. By absorbing the difference between the market price and the capped price, the government aims to ensure that the cost of fuel remains affordable for the public. This policy acknowledges that the market price for RON 95 has indeed surpassed the current ceiling.
Continued Monitoring of Global Oil Trends

The Finance Ministry indicated that it will continue to monitor global crude oil price trends. This ongoing observation allows the government to assess the situation and implement necessary measures to safeguard the welfare and well-being of the people. The commitment to monitor these trends suggests a responsive approach to economic conditions affecting fuel costs.

Reading history

Hide →

This history is cleared when the page is closed.

How is the RON 95 ceiling kept at RM2.05 despite market rises?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends