Petrol, diesel prices drop from midnight

PETALING JAYA: The retail price for petrol and diesel has been announced for the following week, with prices dropping by 27 sen for RON 97 and RON 95, and 14 sen for diesel.

In a statement, Finance Minister Lim Guan Eng said the new prices will take effect from midnight.

He added that in the coming weeks, the retail prices for fuel, based on a weekly float under the Automatic Pricing Mechanism (APM) formula, will be announced every Friday and will take effect on Saturday.

The new price for RON 97 is RM2.23 sen a litre, down from RM2.50, RON 95 is RM1.93 per litre (previously RM2.20) and diesel is RM2.04 per litre (previously RM2.18).

“It must be stressed that the new prices take into account the commissions or margins of petrol dealers, as approved by the Cabinet on Jan 2,” said Lim.

He said the Petrol Dealers Association of Malaysia (PDAM) had held a meeting with Prime Minister Dr Mahathir Mohamad recently to discuss this matter.

PDAM had requested the government to review the petrol dealers’ margin, which is a component under APM, which is presently used to determine the retail prices of petroleum products.

Lim said the government agreed to increase the petrol dealers’ margin by 2.81 sen per litre for RON95 and 3.0 sen for diesel, bringing the total margins to 15 sen per litre for petrol and 10 sen per litre for diesel.

The last time these margins were reviewed was in 2008.

Initially, the weekly float system was supposed to start from Jan 1 but was put on hold following protests from PDAM.

Previously, Lim had said the Pakatan Harapan government was committed to stabilising the retail price of fuel and setting prices which would benefit the people.

This, he said, meant that when global oil prices dropped, the retail price of fuel will also drop to allow the people to enjoy lower prices immediately.

“However, when global prices go up, the retail price for RON95 and diesel will not be higher than RM2.20 a litre and RM2.18 a litre respectively to protect consumers from the increased prices.”

Lim said targeted subsidies for RON95 will be introduced in mid-2019.