Why is RON97 petrol price rising while RON95 stays capped?

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RON97 Price Adjustment Amidst Capped RON95 and Diesel

The retail price of RON97 petrol has been adjusted upwards, while the prices for RON95 and diesel remain capped by the government. For the period of January 27 to February 2, the price of RON97 increased by five sen, moving from RM3.07 to RM3.12 per litre. In contrast, the retail prices for RON95 petrol and diesel were maintained at RM2.05 and RM2.15 per litre, respectively, for the same timeframe.
Government Intervention for RON95 and Diesel

The government has chosen to maintain the retail prices of RON95 and diesel at their established ceiling levels despite significant increases in their actual market prices. This decision was articulated by the Finance Ministry, which stated that these prices were capped at RM2.05 per litre for RON95 and RM2.15 per litre for diesel. This intervention is designed to shield consumers from the full impact of global oil price fluctuations.
Market Dynamics and RON97 Pricing

Unlike RON95 and diesel, RON97 petrol is not subject to the same price capping mechanism. This allows its retail price to fluctuate more directly with global crude oil prices. The recent five-sen increase reflects these prevailing market conditions, demonstrating a different pricing strategy for premium fuel compared to the subsidized fuels.
Ongoing Monitoring and Consumer Welfare

The Finance Ministry has indicated its commitment to continuously monitor global crude oil price movements. This oversight is intended to allow the government to assess the impact of these changes and implement necessary measures to safeguard public welfare. The approach underscores a strategy of targeted support for essential fuel types while allowing market forces to influence premium fuel pricing.

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Why is RON97 petrol price rising while RON95 stays capped?

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