How much is the global oil price hike affecting Malaysian fuel?

Question

Accepted Answer

Global Oil Price Hikes Lead to RON97 Increase, While RON95 and Diesel Remain Subsidised

The retail price of RON97 petrol has seen an increase of five sen, moving from RM3.07 to RM3.12 per litre for the period of January 27 to February 2. Concurrently, the prices for RON95 and diesel have been maintained at RM2.05 and RM2.15 per litre, respectively. This price stability for RON95 and diesel is a result of government intervention, which keeps them at a ceiling price despite significant surges in their actual market values.
RON97 Price Adjustment Reflects Market Dynamics

The adjustment in the retail price of RON97 petrol to RM3.12 per litre indicates a direct reflection of prevailing global oil market conditions. This specific grade of fuel, unlike RON95 and diesel, does not benefit from the same level of government price capping. Therefore, consumers purchasing RON97 are more directly exposed to the fluctuations in international crude oil prices.
Government Maintains Ceiling Prices for RON95 and Diesel

The Malaysian government has opted to absorb the impact of rising global oil prices for RON95 and diesel. The retail prices for these fuels remain fixed at RM2.05 per litre for RON95 and RM2.15 per litre for diesel. This policy is designed to shield consumers from the full extent of the global price increases, ensuring affordability for essential transportation fuels.
Subsidisation Cushions Consumers from Market Volatility

The Finance Ministry has stated that the government is actively cushioning consumers from the effects of the actual oil price hike in the global market. This is achieved by maintaining the retail prices of RON95 and diesel at their respective ceiling levels, even when the actual market prices have escalated significantly beyond these caps. This approach aims to protect the welfare of the populace by mitigating the financial burden of higher fuel costs.
Continued Monitoring of Global Oil Price Trends

The government continues to monitor global crude oil price fluctuations and their potential impact. This ongoing observation will inform future decisions to ensure the protection of the public's welfare. The strategy involves adapting to changes in the international market to maintain a balance between market realities and the need for accessible fuel prices for Malaysians.

Reading history

Hide →

This history is cleared when the page is closed.

How much is the global oil price hike affecting Malaysian fuel?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends