Petrol, diesel prices up by 20 sen from midnight

Pump prices will be up for RON95 and diesel from midnight tonight. - The Malaysian Insider pic, October 1, 2014.Motorists will have to pay 20 sen more per litre of RON 95 petrol and diesel from tomorrow.

RON 95 will now cost RM2.30 per litre, up from RM2.10, while diesel will be RM2.20, an increase from RM2 previously.

This was announced by the Domestic Trade, Consumer Affairs and Cooperatives Ministry this evening.

The ministry said the move was in line with its subsidy rationalisation plan.

"Despite the increase, the government will still need to spend more than RM21bil on fuel RON95, diesel
and LPG subsidies for this year.

"This move is in line with the subsidy rationalisation plan by the government to ensure that the country’s
finances remain strong," the ministry said in a statement today.

The ministry also said the move is aimed at preventing fuel smuggling to ensure the current subsidies of the commodity is not abused by irresponsible parties.

The ministry added incentives, including increased amount of cash aid Bantuan Rakyat 1Malaysia (BR1M) will be given to those the needy and lower income group to offset the burden of the increased fuel prices.

The last time Putrajaya slashed fuel subsidies was on September 2 last year where Prime Minister Datuk Seri Najib Razak had announced a 20 sen reduction in RON95 petrol and diesel subsidies, and a 15-sen decrease in RON97 petrol two days later, causing outraged Malaysians to form long queues at petrol stations to fill up and take to social media to express their views.

However, economists had hailed it as the right move to address the ever-increasing government debt. Najib had said at the time that  the new prices would save the government at least RM1.1 billion.

- TMI