What a splendid way to end the year and here are some good news moving forward to the New 2019.
What is it?
Moving forward, our Finance Minister Lim Guan Eng has stated that petroleum product prices will be changed monthly while fuel prices will be done weekly from January 2019. At the same time, the government has announced that prices for RON95 petrol and diesel will decrease from early January 2019, in line with global crude oil prices.
In case you didn’t know, Currently, RON95 is sold at RM2.20 a litre while diesel at RM2.18 per litre. The price was fixed since 7 June 2018, as it promised that the prices will not change despite the upward trend in global crude oil prices in 2018.
And the fact is that the government has subsidy on fuel with a total of RM7.14 billion as of November this year, with a huge chunk (RM5.82 billion) spent from May to November 2018 alone. Now, with the recent crude oil price has decreased, the government will be adjusting petroleum product prices including RON95 next year onwards to reflect the current prices.
Note that due to the monthly automatic pricing mechanism (APM) for fuel prices, the lower fuel prices can only be reflected in the following month. The switch to a weekly APM system which will be introduced next year will avoid the same problem.