The price of RON97 grade petrol will go up by 3.5 percent from midnight tonight, raising prices from RM2.80 per litre to RM2.90.

This new price matches the record prices set in May last year. However, prices fell by RM0.10 per litre the following month. 

Petrol Dealer Association of Malaysia Abdul Wahid Bidin confirmed this.

Last week, the federal government announced that it had increased its subsidy of RON95 grade petrol - the most commonly used in Malaysia - by RM0.10 in view of rising global crude oil prices. 

This was because the federal government said that it was important to maintain RON95 prices to stave off inflationary pressures. 

RON95 was introduced in September 2009, after the federal government decided to put RON97 prices on a managed float, which is reviewed every month.

A new rule also restricted foreign registered vehicles from using the heavily subsidised RON95.

The Najib administration is under pressure to reign in on its burgeoning budget deficit, while tackling spiralling living cost which is hampered by stagnating wages.