As scheduled, the government has adjusted the price of unsubsidised RON 95 petrol to a weekly market float, with the fuel priced at RM2.65 per litre in the coming week. This price will apply to those who are not eligible for the Budi Madani RON 95 (Budi95) subsidy. All eligible Malaysian citizens with a valid driving licence pay RM1.99 per litre for the fuel, meaning that Budi95 recipients get 66 sen of subsidy for each litre of fuel they use.
The increase was mentioned in the weekly fuel pricing update issued by the finance ministry earlier this evening. The fuel was previously priced at RM2.60 per litre for the entire month of October, as indicated by finance minister II Datuk Seri Amir Hamzah Azizan when the Budi95 programme began on September 30.
Back then, he said that the unsubsidised price was being fixed for a month (which was October) to allow the public to adjust to the workings of Budi95 before it was floated based on global prices.
“We will keep the RM2.60 price stable for one month to get everybody comfortable with this price. After that, similar to diesel, prices will be revised weekly under the automatic pricing mechanism, which reflects global market prices as we also need to source supplies internationally,” he had said.
He had added that fuel prices would follow market movements, rising when global prices increase and falling when they decline, similar to the mechanism applied to diesel. Citing the removal of blanket diesel subsidies last year, he said the retail price was RM3.35 per litre at the time, but has since fallen, in line with global oil prices. It is currently priced at RM3.07 per litre for the coming week.
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