The prices of RON97 petrol and kerosene will be increased by 10 sen respectively effective midnight, said Petrol Dealers Association of Malaysia (PDAM) president Hashim Othman.

azlan With the increase, RON97 petrol will cost RM2.40 per litre (previous RM2.30)while kerosene will be sold at RM2.50 per litre.

Hashim, when contacted by Bernama , said that he was informed about the increase by the authorities, tonight.

Third month in a row

This is the third month in a row in which the price of RON97 had been increased.

The price of RON97 rose to RM2.15 per litre on Nov 2 and RM2.30 per litre on Dec 1 . 

The price of RON97, mostly used by high capacity cars, is controlled through a managed float. 

The managed float was introduced last year while a new but lower quality grade of petrol, RON95, was also introduced and is currently priced at RM1.90.

Earlier last year, the government through the Performance Management and Delivery Unit (Pemandu) had been trying to prepare the public for cuts in subsidies for essential goods. 

Pemandu argued that subsidy cuts, which it dubs " subsidy rationalisations ", was necessary to reduce a burgeoning government subsidy bill. 

However, critics argue that subsidy cuts would affect the lower income group and cause inflation. 

They say that the government should instead go on an austerity drive, swiftly plug leakages and stamp out graft.

Today's increase will however, not affect RON95 petrol that remains at RM1.90 per litre, diesel RM1.80 per litre and LPG RM1.90 per kg.

According to a report today, oil produced by the Organization of the Petroleum Exporting Countries (OPEC) increased to US$89.79 at the start of the week.