Govt lowers RON95, diesel prices for the first time in a year

KUALA LUMPUR (Feb 7): Retail fuel prices for RON95 and diesel, which have been capped at RM2.08 and RM2.18 per litre respectively since early last year, have been revised downwards for the Feb 8 to Feb 14 period, in line with lower global oil prices, the Ministry of Finance (MoF) announced today.

This is the first reduction in the retail prices of both fuel products since February 2019.

For the period mentioned, the price for RON95 will be cut by 4 sen per litre to RM2.04, while diesel will be 10 sen lower at RM2.08. The price of RON97 will also be reduced by 7 sen to RM2.34 per litre, MoF said in a statement.

The adjustments were made using the Automatic Pricing Mechanism formula.

MoF also noted that the actual retail price for RON95 the week before (Feb 1-Feb 7) was RM2.11 per litre, 2 sen higher than the capped price.

"Subsidy for petroleum products and liquefied petroleum gas paid by the government amounted to RM6 billion for the year 2019," it said.

The ministry also assured that the government will maintain the price per litre cap for RON95 and diesel at RM2.08 and RM2.18, respectively, if oil prices rise moving forward.

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