PAS Youth is scratching its head over why diesel is only barely cheaper than RON95 petrol in Malaysia, when it is far cheaper compared to RON95 in Singapore.

Even more curious is the fact that Singapore pumps sell Euro5, a better quality diesel compared to the Euro2 sold by Malaysian retailers, said PAS Youth chief Suhaizan Kaiat,

Singapore diesel retails at around S$1.42 (RM3.79) per litre while RON95 is sold at around S$1.95 ( RM5.20) per litre - a price gap of S$0.53 (RM 1.41 ).

In Malaysia, diesel retails at RM2.23 per litre while RON95 is only 3 sen more at RM2.26 per litre.

He said that based on differential between RON95 and diesel in Singapore, diesel prices in Malaysia should logically be as low as RM1.70 per litre.

In fact, he said, Euro2 diesel should be even cheaper.

"It’s true that there are not many diesel consumers in Malaysia, but diesel is the main fuel for commercial and industrial transporation.

"So if diesel remains at the high prices it is at today, it will indirectly contribute to higher prices of basic goods," Suhaizan ( right ) said.

The government last month removed petrol subsidies and placed RON95 and diesel on managed float.

It said that price of both fuels is expected to drop even more as Brent crude oil prices continue to slide.

However, Pakatan Rakyat says RON95 should be as cheap as RM1.90 per litre and will hold a rally on new year's eve to demand this.

The drop in oil prices caused a shortage of RON97, higher grade petrol earlier eschewed by most consumers as it was not affordable. It now retails at RM2.55 per litre.

Automotive news portal Paultan.org reported that Malaysia will roll out Euro5 standard RON97and RON95 in September 2025, while diesel will be upgraded to Euro5 standard in September 2020.