From Oct 2nd, the petrol and diesel price in Malaysia will go up by 20 sen as the government plans to reduce the amount of fuel subsidy.
After the reduction of subsidy, RON95 petrol cost RM 2.30 and diesel cost RM 2.20.
The Ministry stated that they will implement the subsidy reduction in stages.
Vehicles were seen queuing up at petrol stations to fuel up before the price hike on Wednesday evening.
Despite reducing the amount in subsidies, the government is still spending about RM 21 billion on fuel subsides.
Current market price for RON95 is RM2.58 per litre and diesel is RM2.52 per litre.
In the report (The Sun Daily):
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 this 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.
Source : Sundaily