RON97 petrol increased by 19 sen to RM2.66 per litre

Since before the General Elections on May 9, fuel prices had been maintained at certain prices for all grades. After the elections, the new government announced that it would no longer adjust prices on a weekly basis and would also hold the prices of RON95 petrol and diesel at the prevailing prices which were RM2.20 and RM2.18, respectively. When necessary, subsidies would be used to maintain the prices at those levels.

However, for RON97 petrol, which is formulated to the cleaner Euro4M standard, the price would be floated in accordance with global oil prices. Pump prices would therefore be adjusted on a weekly basis and from today until June 13, 2018, the price has to be increased by 19 sen to RM2.66 a litre, the highest level this year.

According to the Finance Minister, global crude oil prices are at US$76 per barrel, and refined fuel products are currently priced between US$87 and US$88 per barrel. In order to maintain RON95 petrol and diesel at their current retail prices nationwide, the government will subsidies 33 sen per litre. Without subsidies, the prices would increase to RM2.53 and RM2.51 per litre, respectively.

Until the end of 2018, the government has set aside RM3 billion to be used for subsidies so that the majority of motorists and fleet operators can purchase fuel at the current prices.

Most cars are tuned to run on petrol with a minimum of RON95 although RON97 may give better fuel efficiency in some engines as it may enhance combustion. While the petroleum companies never reveal what is the composition of their proprietary additive packages in the fuel, it is also possible that the formulations for RON97 may be better than those for RON95 but generally, fuel in Malaysia is of a high quality anyway.

[Chips Yap]