Malaysian_Fuel_Prices_Subsidies_November_2014

Instead of the price drops enjoyed by RON 95 and 97 petrol post-float, the price of diesel has gone up three sen to RM2.23 a litre because of a large amount of subsidy paid by the government previously, Domestic Trade, Cooperatives and Consumerism minister Hasan Malek has said, Bernama reports.

"(Translated) With regards to diesel, the amount of subsidy paid before was too large. Therefore, after study and discussions, we cannot lower the price. Based on the float system, we have no choice but to raise the price (of diesel) by three sen a litre," the national news agency quoted him as saying.

Hasan said the government will monitor this month's market prices to determine next month's petrol and diesel retail prices, besides looking at new approaches based on feedback.

The price of RON 95 petrol dropped today by four sen to RM2.26 a litre, and that of RON 97 petrol by nine sen to RM2.46 a litre. However, the price of diesel rose three sen to RM2.23 a litre. Euro 5 diesel, currently available in Johor, has gone up by three sen as well, now retailing at RM2.33 per litre.

The price changes follow the ministry's announcement about two weeks ago that subsidies for RON 95 petrol and diesel would be no more from December 1, and that their prices would, like RON 97 petrol, be derived based on a managed float system.