Why are RON95 and diesel prices capped despite global market hikes?

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Government Maintains Fuel Prices to Shield Consumers from Global Market Fluctuations

The retail prices for RON97, RON95 petrol, and diesel will remain unchanged for the week of June 22-28. This decision by the Ministry of Finance aims to shield consumers from the volatility of global oil prices, particularly for RON95 and diesel, where the actual market rates have surpassed the established ceiling prices.
Continued Price Stability for Key Fuel Grades

For the period between June 22 and June 28, the price of RON97 petrol will continue to be sold at RM3.37 per litre. Similarly, RON95 petrol will remain at RM2.05 per litre, and diesel will be priced at RM2.15 per litre. These prices reflect a deliberate government effort to maintain affordability for the public.
Subsidies Mitigate Impact of Rising Market Costs

The government has chosen to maintain the retail price of RON95 at RM2.05 per litre and diesel at RM2.15 per litre. This action is taken despite the fact that the actual market prices for both RON95 and diesel have risen above these capped figures. This indicates a subsidy is in place to absorb the difference.
Monitoring Global Oil Market Dynamics

The Ministry of Finance stated its commitment to continuously monitor the global crude oil market. This ongoing observation will inform future decisions to ensure the welfare and well-being of the people are protected against significant fluctuations in international oil prices.

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Why are RON95 and diesel prices capped despite global market hikes?

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