The government today announced increases in pump prices with RON95 petrol which replaces RON92 will be sold at RM1.80 per litre.

Meanwhile, the price of RON97 has gone up to RM2.05 per litre beginning tomorrow.

The government has earlier warned that pump prices would increase on Sept 1.

petrol price hike before increase panic consumers 040608 01 In May, Domestic Trade and Consumer Affairs Minister Ismail Sabri Yaakob said that premium-grade petrol RON97 is to increase by 20 sen to RM2 per litre, while the lower grade RON95 will be sold at RM1.75.

However, the government has since added another five sen to the price of both grades of petrol.

"Petrol RON92 will be phased out given that its use is rather low that is around five per cent of the total petrol sales in the country,” said Ismail Sabri today.

"In that regard, the government has taken the step to introduce RON95 to ensure that consumers benefit directly from quality petroleum products at a subsidised price," he said in his speech at the Nationwide RON95 Launch here today.

Increase in global oil prices

He said the RON97 product would be in the market as a premium product as there were vehicles, especially high-powered vehicles, that needed it.

Ismail Sabri clarified that the RON95 petrol price had to be raised by five sen from RM1.75 per litre as announced in May as the world fuel prices had changed.

"However the price is the same as the price of petrol normally used by consumers now that is of RON97 (RM1.80 per litre).

"Actually the price of RON95, if going by world markets, is RM1.89 per litre but the government does want the people to feel the rise so it had set the price at RM1.80," he said.

However, Ismail Sabri said the government expects to be able to reduce the subsidy by RM420 million per year with the introduction of RON95 as its subsidy price was lower at 38.81 sen per liter compared to the subsidy for RON97, which was 42.72 sen per litre.

- Bernama