Will RON95 and diesel prices now fluctuate with global oil markets?

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RON95 and Diesel Prices No Longer Subject to Fixed Retail Ceilings

The maximum retail prices for RON95 petrol and diesel are no longer restricted by a price control order. This change follows the revocation of the specific order that previously capped these fuel prices, irrespective of global oil market fluctuations. The revocation was formally announced in a gazette dated June 3.
Revocation of Specific Price Control Order

The Ministry of Domestic Trade and Consumer Affairs has officially rescinded the Price Control and Anti-Profiteering (Determination of Maximum Retail Price for Petrol and Diesel) (No. 8) Order 2020. This order, identified as P.U. (A) 64/2020, had established fixed maximum retail prices for RON95 petrol at RM2.08 per litre and for diesel at RM2.14 per litre. The decision to revoke this specific order was gazetted on June 3.
Removal of Price Ceilings

Previously, the price ceiling mandated by the revoked order ensured that the retail prices of RON95 and diesel remained constant, regardless of the prevailing global oil prices. This mechanism was put in place after the 14th general election. With the rescission of the order, this direct price control is no longer in effect.
Impact on Price Determination

The removal of the price control order signifies a shift away from a fixed pricing structure for RON95 and diesel. This change implies that the retail prices of these fuels are now likely to be influenced by prevailing market conditions, including international crude oil prices and other associated costs. The specific mechanism for determining future prices has not been detailed in the announcement of the revocation.

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Will RON95 and diesel prices now fluctuate with global oil markets?

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