KUALA LUMPUR – Retail prices of petroleum products including RON95 are expected to go down beginning Jan 1, 2019, if the world oil price continues to decline, Finance Minister Lim Guan Eng said today.
He said the reduction in prices would be better reflected as the current monthly ‘Automatic Pricing Mechanism’ method would be replaced by weekly pricing model to enable consumers to enjoy faster price changes in line with the world market.
“In line with the downward trend in world oil market prices, the government will adjust the retail price of petroleum products including RON95 to become lower beginning Jan 1, 2019 as currently, the prices are set on a monthly basis.
“This (monthly price change) provides benefits to consumers if world oil prices are rising, but as the oil price is declining, the government is ready to change the pricing mechanism for petroleum products to that of a weekly basis,” he said in a statement today.
Since June 7, the government has maintained the retail price of RON95 petrol and diesel at RM2.20 per litre and RM2.18 per litre respectively.
However, in the event that oil prices went up again, Lim said it would be controlled and capped at RM2.20 per litre for RON95 and RM2.18 for diesel.
He said this would be maintained until the targeted subsidy system for RON95 petrol is implemented next year.
“This is in line with Pakatan Harapan’s 14th General Election manifesto (PRU14) to improve the economic well-being of the people by enabling the people to benefit from lowering oil prices, but also to help the B40 with targeted oil subsidies if the prices go up,” he said.
He said for the rest, the retail price of RON95 petrol would be based on a managed float system to reduce government subsidy obligations and in line with the fact that the provision of subsidies should benefit those in the low income group.
Lim also dismissed the allegations of former prime minister Datuk Seri Najib Tun Razak that the government had imposed a 30 sen per litre tax on RON95 petrol since Nov, besides stating the sales tax collection of RM120 million a week for RON95 petrol as alleged, was also false.
“His (current) allegation is similar to that of his previous claim that 1MDB has benefited Malaysia, when the world knows that 1MDB is the largest corruption scandal in history that has saddled Malaysia with federal government debt of more than RM1 trillion,” he added.