How much subsidy does the government provide for RON95?

Question

Accepted Answer

Government Subsidy for RON95 Fuel

The Malaysian federal government provided a total subsidy of RM173.26 million for fuel during the period of September 28 to October 4, with RM143.56 million specifically allocated for RON95. This subsidy was part of a government decision to maintain the retail price of RON95 and diesel, preventing them from rising in line with market fluctuations. Without this intervention, the retail price for RON95 was calculated to be RM2.49 per litre under the Automatic Pricing Mechanism (APM).
Subsidy Allocation for RON95

Of the total RM173.26 million in federal government subsidies for the specified week, a significant RM143.56 million was designated for RON95. This amount reflects the government's commitment to keeping the retail price of RON95 at RM2.08 per litre, despite market-driven calculations indicating a higher price. The remaining RM29.70 million of the total subsidy was allocated for diesel fuel.
Maintaining Retail Fuel Prices

The government's decision to maintain the retail prices for RON95 and diesel at RM2.08 and RM2.18 per litre respectively, demonstrates an effort to stabilise petroleum-based product costs. This policy aims to alleviate the financial burden on the populace by absorbing the difference between the subsidised price and the price determined by the Automatic Pricing Mechanism (APM). The APM would have otherwise set the RON95 price at RM2.49 per litre.
Impact on RON97 Pricing

While RON95 and diesel prices remained stable due to government subsidies, the retail price for RON97 saw an increase. For the period of September 28 to October 4, RON97's price rose by 12 cents per litre, moving from RM2.67 to RM2.79 per litre. This contrasts with the government's intervention in subsidising RON95 and diesel, highlighting a tiered approach to price management across different fuel grades.

Reading history

Hide →

This history is cleared when the page is closed.

How much subsidy does the government provide for RON95?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends