Malaysia

RON95 price will stay, says Ismail

April 15, 2012

Najib previously pledged to keep RON95’s price unchanged for the year. — Reuters picNajib previously pledged to keep RON95’s price unchanged for the year. — Reuters picKUALA LUMPUR, April 15 — The price of RON95 petrol will remain at RM1.90 a litre despite the rising oil prices globally, Bernama Online reported Datuk Seri Ismail Sabri Yaakob as saying today.

According to the minister of Domestic Trade, Cooperatives and Consumerism, the move was to prevent a reactionary increase in the prices of other necessities.

“Petrol is a major essential item and if the government increases the price, it will result in traders resorting to hiking their prices as well and this will burden the people,” Ismail was reported as saying during an even in Bera, Kedah today.

Last month, Ismail announced that the subsidy for RON95 petrol has increased by 10 sen per litre, following rising oil prices, in order to keep pump prices unchanged.

In February, Prime Minister Datuk Seri Najib Razak assured Malaysians that RON95’s — which is used by most motorists — present price would be sustained regardless of global oil prices.

Earlier this month, Najib also assured Malaysians tonight that subsidies will continue under his administration that is now focusing on the rising cost of living, signalling a delay in economic reforms as he prepares to go to the polls.

The prime minister said this despite launching a plan two years ago to eventually do away with subsidies, which have become a RM30 billion annual burden for the government.