PUTRAJAYA: The prices for RON95 petrol and diesel will increase by 5sen per litre at midnight (12.01am Dec 4) while the prices of liquified petroleum gas (LPG) and sugar will be up by 5sen and 20sen per kg respectively.
RON95 would be raised to RM1.90 per litre from the current RM1.85 while price of diesel would be retailed at RM1.80 per litre. LPG and sugar will cost RM1.90 and RM2.10 per kg respectively.
Minister in the Prime Minister’s Department Datuk Seri Idris Jala Idris said the price hike was the second wave of the subsidy rationalisation programme.
Prices of RON95 and diesel went up by 5sen per litre while sugar and LPG were raised by 25sen and RM10 on July 16 for the first wave of the programme.
That resulted in total savings of RM779mil. This time around, Idris said the savings is expected to be RM1.18bil.
Idris said the savings would be channelled towards improving urban transportation network, rural basic infrastructure and roads, education and efforts to combat crime.
He added that the increase was very minimal and should not hurt the people.
“I think it is fair to the rakyat. I believe people will be able to accept it,” he told a media briefing on the second wave of subsidy rationalisation here Friday.
Idris said the Consumer Price Index could be contained in view of the low increase and declined to disclose the amount of subsidy the government would have to pay for the items.