RON97 to go up 15 sen from tomorrow: Sources

KUALA LUMPUR - Malaysia is to increase the price of the RON97 petrol blend by 15 sen to RM2.30 per litre from December 1, two sources familiar with the plans said.

A formal announcement will be made later today, one of the sources said.

Malaysia’s government earlier this year cut subsidies on the benchmark RON95 blend, although it baulked at the wide-ranging reforms recommended by a government thinktank, fearing a voter backlash.

The government does not subsidise RON97, which is a higher octane fuel compared to the RON95.

In October, the government said its subsidy spend would be RM24.9 billion in 2011 up from a planned RM23.7 billion in 2010.

Malaysian inflation edged up to 2.0 per cent year-on-year in October, and housing, water, electricity and fuel rose 1.4 per cent from a year ago. Those items account for 21.4 per cent of the CPI basket. – Reuters