PUTRAJAYA: Finance Minister Lim Guan Eng today announced that prices of the RON95 and diesel fuel will drop below the capped price.
RON95 is currently capped at RM2.08 per litre while diesel at RM2.18 sen per litre.
Lim said RON95 will drop by 4 sen and diesel by 10 sen.
He attributed this to a slump in global oil prices, lower than the cap under the Automatic Price Mechanism.
“We have fulfilled our promise. This is janji ditepati,” Lim told a press conference here.
Lim said the drop would have positive and negative effects.
He said the government would see a reduction in income but it would also spend less on fuel subsidies.
RON97, meanwhile will drop by 7 sen to RM2.34 per litre.
The new prices will take effect from midnight till Feb 14.
“Consumers will be able to reap the benefits of the drop in prices immediately,” Lim said.
Lim went on to say that even if the global oil prices were to increase, the price for RON95 and diesel would still be capped at RM2.08 and RM2.18 per litre respectively.
Meanwhile, Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail said the fuel prices would continue to be based on the Automatic Pricing Mechanism (APM) for now.
“This is until we develop the targeted fuel subsidy mechanism.”