The government has increased the price of petrol by a whopping 30 sen, from RM1.62 to RM1.92 per litre for top grade RON 97 effective midnight.

The price hike, the first time in seven months, represents an increase of 18.5 percent - the country's biggest ever fuel price hike.

While the new price of RON 97 petrol is now RM1.92 per litre, for RON 92 petrol, it is RM1.88.

Meanwhile, the cost of diesel will also be 30 sen more tomorrow, a 23.4 percent increase from RM1.281 to RM1.581 per litre.

The price of liquefied petroleum gas (LPG) has also been raised by 30 sen to RM1.75 per kg.

In Sarawak, RON 97 will cost RM1.91 per litre, RON 92 petrol RM1.88, diesel RM1.578 per litre, and LPG RM1.83 per kg.

In Sabah, RON 97 will cost RM1.90 sen per litre, RON 92 RM1.88, diesel RM1.584, and LPG RM1.83 per kg.

This has been the sharpest petrol price increase in recent years.

The last price hike was in July last year when the cost of petrol went up by seven percent with diesel costing 23 percent more.

In less than two years, the cost of diesel has increased by an unprecedented 102.4 percent while petrol has gone up by 40.1 percent.

No further hikes

The government had earlier warned to expect more increases as it was committed to cutting fuel subsidies to free up funds for development projects.

It argued that it was forced to gradually reduce subsidies in the wake of record global crude oil prices.

According to Bernama , the government has given an assurance that there would be no further rise in the price of petroleum products this year.

Today's announcement, through a statement released by the Prime Minister's Department, was made late this evening to prevent last-minute buying among motorists.

Nevertheless, there were reports of cars queuing up outside petrol stations tonight causing traffic jams in certain areas.

"The retail price for petroleum products is being raised because in 2005 the amount of subsidy borne by the government was RM7.41 billion. Whereas tax exemption stood at RM7.85 billion," said the statement.

The burden of subsidy and tax exemption borne by the government this year alone - from January to February 2006 - was RM1.19 billion and RM1.44 billion respectively, it added.

The government said without subsidy and tax exemption, the full cost of RON 97 would have been RM2.46 per litre, RON 92 RM2.37, diesel RM1.98, and LPG RM3.21 per kg in the peninsular.

The spate of price hikes in recent months is expected to increase transportation and other costs for Malaysians.