In light of the plummeting global crude oil prices, the Malaysian Government has effectively removed all fuel subsidies since 12 a.m today and the retail prices for RON 95, RON 97 and diesel will be in accordance to the managed float system.
This system will govern the fuel prices for the immediate month, whereas the following month’s pricing will be based on the preceding month’s median price which are subjected to the global crude oil price.
As of now, the current retail price for RON 97 is RM2.46 per litre, a nine-cent plunge since the last drop (RM2.55 per litre) in mid November. In other words, the current RON 97 price is the lowest it has been in over two years.
The price for RON 95 has also dropped, and is now priced at RM2.26 per litre for the whole month of December. It was previously sold at RM2.10 per litre before the RM0.20 hike in early October, bringing it up to RM2.30 per litre.
Diesel on the other hand, is increased by three cents – now at RM2.23 per litre, up from the previous RM2.20 per litre mark.
Domestic Trade, Cooperatives and Consumerism Minister, Datuk Seri Hasan Malek said, “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.”