The price of RON95 and diesel fuel will go up by 20sen effective midnight.
The new prices for RON95 will be RM2.30 per litre while diesel fuel will cost RM2.20 per litre.
The Domestic Trade, Cooperatives and Consumerism Ministry said the government has decided to reduce the current fuel subsidy by 20sen in keeping with its subsidy rationalisation plan.
“Despite the increase, the Government will still need to spend more than RM21bil on fuel RON95, diesel and LPG subsidies for this year. This move is in line with the subsidy rationalisation plan by the government to ensure that the country’s finance remain strong,” the Ministry said in a statement on Wednesday.
It said the Government also aimed to curb the further smuggling of fuel by irresponsible quarters and also to ensure that the current subsidy is not misused.
“The Government will continue to implement the subsidy rationalisation in stages so as to not burden the lower income group. We understand that fuel price increase will affect the economy and the people. Therefore, we will continue to provide incentives to the lower income group to alleviate their burden,” said the Ministry.
The current market price for RON95 is RM2.58 per litre while diesel is RM2.52 per litre.