The government has never imposed any sales tax on consumers for petrol price to ensure that the people are not burdened by the price of the commodity.

Domestic Trade, Cooperatives and Consumerism Minister Ismail Sabri Yaakob said the sales tax for petrol was 58 sen per litre, which the government did not collect from consumers.  

In rebutting claims by certain quarters that the pump price for the premium grade petrol RON97 is now cheaper than that of RON95, he said those who made the claims had omitted the sales tax when making comparison of the real market price for both grades of petrol.

“They purposely try to confuse the public by omitting the sales tax on RON97,” he told reporters after opening the 10th Global Indian Festival 2012 at the Mid Valley Exhibition Centre in Kuala Lumpur today, when asked to comment on the statements by some bloggers yesterday that RON97 is now cheaper than RON95.

“The actual market price for RON95 will be RM3.18, where the government subsidy of 70 sen and 58 sen in sales tax are added to the pump price of RM1.90 per litre.

“As for RON97, the real market price with tax is RM3.38 (RM2.80 per litre plus 58 sen in sales tax).

“This means that the government not only gives subsidy for petrol (RON95), it also forgoes the sales tax. Actually, the government can collect the sales tax, but it does not,” he said.

As of today, the pump price for the subsidised RON95 is still maintained at RM1.90 per litre while RON97 was reduced by 10 sen yesterday to RM2.80 per litre following a dip in average global crude oil price recently.

The price of RON97 is unsubsidised and determined by global market forces.

“I hope the public understand that when the price of RON97 goes down, it does not mean the price of RON95 is also down, as the government still bears the subsidy of 70 sen per litre for RON95,” he said.

- Bernama