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Monday, December 01, 2014

Petrol prices down, diesel up from December 1

Both RON95 and RON97 petrol prices will be reduced effective midnight tonight.

The Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek (pic) said the retail price for RON97 and RON95 will go down by nine sen to RM2.46 per litre and four sen (RM2.26 per litre), respectively, Bernama reported today.

He said, however, that the price of diesel would increase by three sen to RM2.23 per litre.

The current retail prices for RON97 is RM2.55 per litre, RON95 (RM2.30 per litre) and diesel (RM2.20 per litre).

Hasan added that the new prices would be effective only for the month of December.

"The government will follow the development in the market prices of product cost for each time and currency exchange rate to determine the retail prices of petrol and diesel for the consecutive months," Bernama quoted him as saying in a statement today.

The ministry has urged all petrol companies and petrol station operators to comply with the new prices, stating that firm action would be taken against those who contravened the new price regulations set by the government under the Supply Control Act 1961.

Hasan had said on November 21 that the government will remove all fuel subsidies from tomorrow. Hence, the retail price set for RON95 petrol and diesel would be in accordance to the managed float method as had been implemented for the retail price of RON97 petrol since July 2010.

"Through this managed float method, the average change in the product cost will determine pricing for the next month, which means that if the global market price of crude oil increases, the retail prices of RON97, RON95 and diesel will also rise and vice-versa," he said, according to Bernama. – November 30, 2014.

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