RON95 petrol subsidy to continue

BERA, Malaysia - The Government will continue to allocate subsidy for RON95 petrol despite fluctuations in global fuel prices, said Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.

He added that the price of RON95 petrol would remain steady at RM1.90 (s$0.75) per litre even if global fuel prices were to increase.

"The government subsidy for RON95 is now 70 sen per litre. Sometime ago, the subsidy was RM1.03 per litre.

"Whatever happens to global fuel prices, RON95 will stay at RM1.90," he said at the opening of the Bera farmers association's 35th annual general meeting here yesterday.

The minister was asked whether there would be a reduction in RON95 petrol price following the move to reduce the price of RON97 petrol by 10 sen to RM2.80 two days ago.

In March, Prime Minister Datuk Seri Najib Tun Razak had pledged to maintain the price of RON95 petrol in the near future despite soaring global prices.

Under Budget 2012, about RM17 billion was provided in subsidies for petroleum products.

Ismail Sabri urged the public to understand that the Government had waived the sales tax for RON95 petrol and added subsidy into its pump price of RM1.90 per litre.

"Many people have called me to ask about the possibility of a decrease in the RON95 petrol price," he said.

"The actual market price for RON95 is RM3.18. The Government not only gives subsidy for RON95, it also forgoes the sales tax."

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