RON95, diesel prices increase by 20 sen midnight

The price of RON95 petrol and diesel will be increased by 20 sen/litre effective 12.01am on October 2, 2014.

This means the new price for RON95 will be RM2.30 per litre while that of diesel, RM2.20 per litre.

The increase follows an announcement by the Domestic Trade, Cooperatives and Consumerism Ministry (DTCCM) which said the Government has decided to reduce the fuel subsidy by 20 sen/litre, in line with the subsidy rationalisation plan.

According to a statement released Wednesday, the current unsubsidised market price for RON95 petrol is RM2.58 per litre while diesel stands at RM2.52 per litre.

“Despite the reduce in fuel subsidy, the Government will still have to fork out more than RM21 billion for subsidies on RON95 petrol, diesel and LPG this year.

“This move is in line with the Government’s subsidy rationalisation plan to ensure the country’s finance remains strong.

“The Government also aims to curb smuggling activities by irresponsible parties,” the statement said.

The ministry said, the money saved from the reduction in fuel subsidies will be used for the development of education, health, a more efficient public transport system and improving national security.

“Subsidy rationalisation is expected to help boost the national economy and propel Malaysia into a high income nation,” the statement added.

Meanwhile while taking note of the affects the subsidy rationalisation plan will have on the people, the ministry said the Government will continue to provide financial assistance especially for low and medium income earners.

This includes an increase in the 1Malaysia People’s Aid (BR1M) programme which will be announced in Budget 2015.