The price of RON97 petrol remains high but it can be considered ‘good news’ that it has not been set higher for the coming 7 days. The fuel, formulated to meet Euro4M standards, will remain at RM2.63 a litre nationwide.
Likewise for RON95 petrol and diesel, which have not seen any changes for many weeks; they will be priced at RM2.08 and RM2.18 a litre, respectively. This doesn’t mean that their actual cost has not gone up. However, the government has made a promise to cap the prices at those levels and is using subsidies to do so.
If the government were to set prices based on the calculations under the Automatic Pricing Mechanism formula, then the retail price of RON95 would be set at 2.33 per litre. For diesel, it would be RM2.36 per litre.
The government’s efforts to stabilize the prices of fuel are commendable though they obviously are a drain on financial resources at a time when it needs all the money it can get. By the second half of the year, subsidising fuel will become more targeted so that those who really need it – like the lower income group – will benefit. Those who can afford the new generation of turbocharged small-engined premium cars will surely be able to afford to pay more.