|Image source: The Star|
Prime Minister Datuk Seri Najib Tun Razak announced the decision, saying that it would save the Government RM1.1bil from September to December this year and RM3.3bil annually.
Before the revision, the price for RON95 was RM1.90 per litre and RM1.80 for diesel. The last price increase for RON95 was in 2010.
Currently, the Government subsidises 83 sen for each litre of RON95 petrol and RM1 for a litre of diesel.
The price of premium petrol RON97 remains at RM2.70 per litre since May.
The retail price of RON97 petrol is determined by a 'managed float' in which the price fluctuates according to market forces.
Here in Malaysia, the price of petrol is the same across the board meaning wherever you fill your tank in any part of the country, the petrol price is the same. There are two types of petrol sold in Malaysia, RON95 and RON97. The latter being the premium grade is the petrol available to foreign vehicles in the country.
Meanwhile, consumers reacted with anger over the 20 sen rise in RON95 and diesel prices over social networks, with many saying that increases in the price of food and other goods would now be inevitable.