The price of RON 97 grade petrol has been increased by 5 sen, bringing the price up to RM2.15 per litre beginning tomorrow, according to reports.

azlan The price of RON 95 petrol and diesel, however, remains unchanged at RM1.85 per litre.

This is the first increase in fuel prices since the infamous "5-in-1" hike on July 15 this year, which was aimed at reducing the government's burgeoning fuel subsidies.

It was announced then that RON 97 grade petrol prices would be determined at a managed float and is the lowest grade that could be legally sold for foreign-registered vehicles.

It is believed that even this price will be further adjusted later.

No official announcement

Unlike before, there was no major announcements from the government over the increase in fuel cost. 

azlan Rumours that the RON 97 prices will be increased have been circulating since this afternoon and petrol dealers said that such a directive have been issued.

Malaysiakini has also cited a circular from a petrol company informing dealers of the increase. 

Deputy Minister of Domestic Trade, Cooperative and ConsumerismTan Lian Hoe confirmed the matter late this evening when contacted by several newspapers.

The subsidy cuts are part of the government's plans to reduce subsidies for essential goods as proposed by the Performance and Delivery Unit (Pemandu) under Minister in the Prime Minister's Department Idris Jala.

Jala had warned earlier this year that Malaysia faces the prospects of bankruptcy by 2019 - as occured in Greece and Iceland, which are now debt-ridden - should subsidies not be reduced.

While the administration of Prime Minister Najib Abdul Razak had tried to sell the subsidy reductions as a necessity, however, critics say forcing consumers to tighten their belts without the government undergoing an austerity drive was meaningless.

Late last month, Najib announced a slew of projects - including the construction of a RM5 billion 100-story Warisan Merdeka tower that the government said would attract investors and make Malaysia more appealing for tourism.