PEMERKASA: Fixing the ceiling price of RON95, diesel to protect the people - Muhyiddin

KUALA LUMPUR: The fixing of the retail price of RON95 and diesel at RM2.05 and RM2.15 per litre respectively is to protect consumers from the effects of the current increase in oil prices, said Prime Minister Tan Sri Muhyiddin Yassin.

In a special message today, he said the government currently bears a subsidy at a rate of almost 30 sen per litre.

He added that the decision was taken as world oil prices would rise and continue to cause an increase in the retail price of petrol and diesel.

To protect consumers from the effects of the increase in oil prices, the retail price of RON95 petrol and diesel is set at a ceiling price of RM2.05 per litre and RM2.15 per litre. “

“The government currently bears the subsidy at a rate of almost 30 sen per litre. This means that the government bears a total subsidy worth RM3 billion at the current price, ” he added.

The Prime Minister said this when announcing the Strategic Program to Empower the People and the Economy (PEMERKASA) worth RM20 billion, with a fiscal injection of RM11 billion.

Apart from that, Muhyiddin said, the government also bears high subsidies on liquefied petroleum gas (LPG) products.

“The actual price in the market for a 14 kg barrel of LPG is currently around RM50. However, the retail price has been set at RM26.60 per barrel.

"Therefore, the government has given a subsidy of almost 50 per cent for every 14 kg barrel of LPG used by the people, especially households," he added.

Muhyiddin said the government would continue to provide the subsidy so that the price of daily necessities remained affordable.