RON-97-petrol

The reduction in the pricing of RON 97 petrol has seen an increase in demand for it, to the point that supply has been running low - primarily in the Klang Valley and the east coast - over the past week, in some cases to the point of petrol stations running out of stock, according to news reports. It's the first time a shortage of RON 97 has been reported in the country.

The Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) had been made aware of the situation last week, the Petroleum Dealers Association of Malaysia (PDAM) said. The association added that at this point, stocks were on their way to returning to normal levels, with only one fuel provider facing a shortage of RON 97.

On November 19, the price of RON 97 petrol was reduced by 20 sen to RM2.55 per litre, and dropped a further nine sen yesterday (December 1) to RM2.46 per litre.

The RM2.46 per litre price for RON 97 significantly narrows the price difference between it and RON 95, which is now set at RM2.26 per litre, which would account for motorists opting for it over the lower octane number fuel. Up to September, the difference was 55 sen per litre (RM2.75 for RON 97, RM 2.10 for RON 95).

The price changes follow the Domestic Trade, Cooperatives and Consumerism (KPDNKK) 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.

Globally, the price of crude oil – which now directly affects RON 95 petrol and diesel prices in Malaysia – is currently at its lowest point since August 2010, hovering around US$70 (RM237) a barrel.