Price increase in RON95 petrol expected in July or October upon mild adjustment of fuel subsidy

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Price increase in RON95 petrol expected in July or October upon mild adjustment of fuel subsidy
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The Malaysian Institute of Economic Research (MIER) anticipates a “mild adjustment” in RON95 subsidy and therefore, the fuel’s retail price in Malaysia, and it expects the price adjustment to be carried out in July or …

The Malaysian Institute of Economic Research anticipates a “mild adjustment” in RON95 subsidy and therefore, the fuel’s retail price in Malaysia, and it expects the price adjustment to be carried out in July or October this year after the impact of the diesel subsidy rationalisation has been assessed, reported

The adjustment is expected to be not as steep as that of retail pricing of diesel fuel, which increased by 56%, or RM1.20“We need to look at the impact of the diesel subsidy rationalisation, so we probably need to give it a three- to six-month grace period. We need to look at the impact analysis first, and how the people area adjusting. From that, the government can make the next adjustment to the RON 95 ,” Dass said.

The price adjustment for RON 95 petrol is expected to be carried out “closer to October” as this would give the government more time to look at the impact analysis, he added. Regarding the contribution of diesel fuel pricing to the consumer price index basket, a 1% increase in diesel price leads to an impact of 0.2% upon the CPI basket, which is therefore almost negligible, Dass said. Meanwhile, the contribution of RON 95 petrol pricing to the CPI basket is around 5.5%.before it decides to move on to further related matters, when asked about a timeline for a targeted subsidy to be implemented for RON 95 petrol., Amir Hamzah said.

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