KUALA LUMPUR – The Ministry of Domestic Trade, Cooperatives and Consumerism today announced that the fuel subsidy for RON 95 petrol and diesel will be reduced by 20 sen per litre effective Oct 2, 2014.
Following the reduced subsidy, the new retail price for RON95 will be RM2.30 per litre while diesel fuel will cost RM2.20 per litre.
The current market price for RON95 is RM2.58 per litre while diesel is RM2.52 per litre.
Despite the cut in subsidy, the government would still need to spend more than RM21 billion on RON95, diesel and liquefied petroleum gas subsidies for this year.
“This move is in line with the government’s subsidy rationalisation plan to ensure that the countryâ€™s finance remained strong.
“The government also aimed to curb leakages and smuggling of fuel by irresponsible quarters,” the ministry said in a statement. – Bernama