The RON95 petrol which will replace RON97 will be retailed at RM1.80 per litre beginning Tuesday, said Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob who launched the RON95 petrol.
RON97 is being upgraded as a premium petrol with a price of RM2.05 per litre, said Ismail Sabri.
“Petrol RON92 will be phased out given that its use is rather low that is around five per cent of the total petrol sales in the country.
“In that regard, the government has taken the step to introduce RON95 to ensure that consumers benefit directly from quality petroleum products at a subsidised price,” he said in his speech at the Nationwide RON95 Launch here Monday.
He said the RON97 product would be in the market as a premium product as there were vehicles, especially high-powered vehicles, that needed it.
Ismail Sabri clarified that the RON95 petrol price had to be raised by five sen from RM1.75 per litre as announced in May as the world fuel prices had changed.
“However the price is the same as the price of petrol normally used by consumers now that is of RON97 (RM1.80 per litre).
“Actually the price of RON95, if going by world markets, is RM1.89 per litre but the government does want the people to feel the rise so it had set the price at RM1.80,” he said.
However, Ismail Sabri said the government expects to be able to reduce the subsidy by RM420 million per year with the introduction of RON95 as its subsidy price was lower at 38.81 sen per liter compared to the subsidy for RON97 which was 42.72 sen per litre. — BERNAMA