Rumours are flying that the government will, on top of the implementation of goods and services tax (GST), increase the fuel price in April.

 

The price of RON95, RON97 and Diesel is set to go up 5 to 10 sen as the international crude oil price has rebounded, from US$44 per barrel in March to US$53 per barrel last week, according to Sin Chew Daily . 

 

The paper quoted a petrol dealer source saying that the government will not delay the adjustment of petrol price despite GST starting in April.

 

"GST will be imposed on RON97 and V Power fuel in Shell petrol stations, but RON95 and diesel are GST-exempted.

 

"Therefore, the government will not postpone the increase of fuel prices because of GST," said the daily.

 

However, a petrol dealer hopes that the current fuel price is maintained, opining that this would be a wise decision.

 

"A lot of things will be happening in April, GST for instance. Should the price of fuel go up, the public may not take it very well,” he explained. 

 

Come Wednesday, the six percent GST will be implemented. Supermarkets are now packed with  pre-GST shoppers stocking up on necessities. 

 

Currently, the price for RON95 is RM1.95 per litre whereas RON97 is RM2.25 per litre. A litre of diesel costs RM1.95. 

 

After a slump in the price of crude oil last year, the government since then introduced the "managed float" system, adjusting the pump price every month. 

 

However the source opined that for fuel price adjustment, crude oil should not be the sole factor that the government takes into account,

 

"A lot of other factors are coming in. Not just crude oil alone. Crude oil is in US dollars, but we use the ringgit, so the ringgit's strength also has to be considered when the government sets the fuel price.

 

"It is up to the Finance Ministry to increase or decrease, but my feeling is that they will maintain the price.”  

 

He also noted, over this whole month, the price of crude oil didn’t fluctuate that much.