IPOH: The prices of all petroleum products, including RON95 petrol, will be reviewed in June, said Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob on Tuesday.
He said the price revision, to be conducted by the ministry and other agencies such as the finance ministry and the Performance Management & Delivery Unit (Pemandu), would determine whether the prices would be maintained or increased, depending on the government’s subsidies.
“According to Pemandu’s subsidy rationalisation plan, there will be a revision every six months for subsidies on all products.
“The last revision we had for diesel, LPG and RON95 was in December, last year.
“This means that a mid-year revision will be carried out this month or early June…I can’t say what will happen but the revision will take place and the government’s subsidy burden is high,” he told reporters after officiating the Ipoh Umno Division Delegates Meeting here.
He said this when asked about the current price of RON95 petrol, following the increase in price of RON97 petrol to RM2.90 per litre. On April 2, the price of RON97, which was floated according to current petrol prices, rose 20 sen to RM2.70 per litre, following the Middle East crisis, while the price of RON95 increased by five sen to RM1.90 per litre last December.
Ismail Sabri said that although he had previously stated that petrol prices would not go up at the moment, that did not guarantee petrol prices would stay the same forever, because the government was already burdened with subsidies for petroleum products.
“Last year, the government’s subsidy for petroleum products was RM8bil when world fuel prices shot up, and we don’t see signs that it will drop.
“If this continues, the government will bear RM18bil in subsidies this year, an increase of RM10bil,” he said.
He said that if subsidies were reduced, the RM10bil could be used to build more schools, village roads, housing projects and educational aid. — Bernama