Come next month, the government will review prices of all petroleum products, including the RON95 petrol, before deciding to retain them or otherwise, Domestic Trade, Cooperative and Consumerism Minister Ismail Sabri Yaakob said today.

He said the price review to be conducted by the ministry and other agencies such as the Finance Ministry and the Performance Management & Delivery Unit (Pemandu) would determine whether prices would be maintained or increased, depending on the government's subsidies.

petrol price hike before increase panic consumers 040608 02 "According to Pemandu's subsidy rationalisation plan, there will be a revision every six months for subsidies on all products.

"The last revision we had for diesel, LPG and RON95 was in December, last year.

"This means that a mid-year revision will be carried out this month or early June... I can't say what will happen but the revision will take place and the government's subsidy burden is high," he told reporters after officiating the Ipoh Umno division delegates meeting today.

He said this when asked on the current price of RON95 petrol, following the increase in price of RON97 petrol to RM2.90 per litre.

On April 2, the price of RON97, which was floated according to current petrol prices, rose 20 sen to RM2.70 per litre, following the Middle East crisis, while the price of RON95 increased by five sen to RM1.90 per litre last December.

Ismail Sabri said, although he had previously stated that petrol prices would not go up at the moment, it did not guarantee petrol prices would stay the same forever, because the government was already burdened with subsidies for petroleum products.

Call to carry out an indepth study

"Last year, the government's subsidy for petroleum products was RM8 billion when world fuel prices shot up, and we don't see signs that it will drop.

"If this continues, the government will bear RM18 billion in subsidies this year, an increase of RM10 billion," he said.

He said, should subsidies be reduced, the RM10 billion could be used to build more schools, village roads, housing projects and educational aid.

NONE Meanwhile, in a related development, the government has been urged to carry out an indepth study before making its decision to increase the price of RON95.

Umno vice-president Ahmad Zahid Hamidi (left) said the government should find other mechanisms to save on fuel subsidy.

"I believe Prime Minister Najib Abdul Razak has other mechanisms that can be used to bear the subsidy and increase in oil price.

"The government can also utilise other resources for the purpose," he told reporters after closing a gotong-royong programme jointly organised by the Sungai Gau village development and security committee and the Malaysian Armed Forces in Temerloh today.

He said this in response to Umno Youth's call for the government to refrain from increasing the price of RON95 petrol as the public was already burdened with the increasing inflation.

- Bernama

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