Ahmad Maslan: RON95 petrol and diesel price still cheapest vis-a-vis neighbouring countries

The retail price of petrol in Malaysia is still the cheapest as compared to neighbouring countries even after Monday's 20 sen price increase for a litre of RON95 petrol and a litre of diesel, Deputy Finance Minister Datuk Ahmad Maslan said on Tuesday.

He said a litre of diesel in Thailand costs RM3.06 and RON95 petrol is sold at RM4.74 a litre; followed by Singapore (RM4.32 and RM5.56); Indonesia (RM3.43 and RM3.05); and in the Philippines (RM4.32 and RM5.44 (RON93).

The diesel and RON95 petrol in Malaysia are below RM3 a litre -- RM2.00 and RM2.10 a litre.

Ahmad also quoted a study conducted by Bloomberg entitled "Highest and Cheapest Gas Prices by Countries" with Malaysia at 8th spot after Venezuela, Saudi Arabia, Kuwait, Egypt, United Arab Emirates, Iran and Nigeria, in offering the lowest fuel price.

The study carried out in February thia year also saw Malaysia ahead of Mexico, the United States, Russia, Indonesia, Pakistan and Thailand.

Ahmad said the price rationalisation for RON95 petrol and diesel must be implemented now in order for the government's subsidy to be fair and targeted particularly for medium-and low-income earners who would reap the most benefits.

"All these are because of the government's commitment to continue helping the people. With this subsidy rationalisation, we want to focus on targeted subsidies particularly for medium and low-income earners by increasing the 1Malaysia People's Aid (BR1M).

"Don't be swayed by political instigators who will take advantage from this issue whilst the government's move is fair and just in the interests of the people's welfare and well-being.

Ahmad said that though the price of RON95 petrol and diesel has been raised by 20 sen a litre from Tuesday, the people must understand that when compared to neighbouring countries and the world, Malaysia has not reached the actual fuel price level because the government still provided 63 sen subsidy for a litre of RON95 petrol and 80 sen for a litre of diesel.

This brings the total subsidy borne by the government for petrol this year to a whopping RM24.8 billion and with the 20 sen subsidy reduction, the government can save RM1.1 billion.

For next year, the government will receive RM3.3 billion from the savings which will be used to manage the country's development and to give higher BR1M payment.

Ahmad, however, said the government would continue to subsidise essential items such as cooking oil, sugar, flour, rice and cooking gas.