BN: Petrol prices up because refined oil prices up

Fuel prices are up because petrol prices at the pump are determined on the monthly average of refined oil prices, and not crude oil, the BN Strategic Communications Team said.

"While global oil prices had increased in recent months due to an agreement to cut production by oil producing countries - which also benefits Malaysia, the price of refined oil products have increased further due to other reasons," it added.

This, it said, include refineries shutting down around the world due to fires and major maintenance, leading to decreased supply and increased margins and pricing for refineries.

The communications team was responding to opposition leaders such as PKR president Dr Wan Azizah Wan Ismail, who said the fuel price hike which came into effect today was unjustified.

The pump price for RON95 and RON97 increased to RM2.30 and RM2.60 a litre respectively, while diesel increased by 10 sen to RM2.15.

Petaling Jaya MP Tony Pua had argued that this shouldn't be the case as crude oil prices had dipped in January, while the ringgit's value remained relatively the same.

"We would like to inform both these members of Parliament, the other opposition leaders and their propagandists that Malaysians do not pump crude oil into the cars.

"The majority of Malaysians pump refined petrol in the form of RON95 or refined diesel," responded the communications team.

The team admitted that Malaysians have reason to complain about the fuel price hike this month, but said that Malaysia still enjoys the cheapest in the South East Asia behind Brunei, and is the 15th cheapest in the world.- Mkini