Kuala Lumpur (Antara Bali) - Subsidized fuel oil (BBM) Malaysia will be fully abolished from 1 December to premium RON95 and diesel, and the determination of the retail price is made following the world market price.
The move will give a community the opportunity to enjoy a cheaper price than now is 2.30 ringgit per liter (Rp8,500) for premium RON95 and 2.20 ringgit (Rp8.100) per liter for diesel, following a drop in the world price of crude oil Here you are.
Minister of Domestic Trade, Cooperatives and Consumption Datuk Seri Hasan Malek as quoted by local media in Kuala Lumpur on Saturday said that after 1 December there is no subsidy on the two types of fuel.
Cabinet meeting on Friday (21/11) establishes agreed to implement the scheme as set out on the sale of premium RON97 since July 2010, he said.
"No more subsidies after 1 December and fuel sold to follow the market. But now he (crude oil prices) showed a downward trend," he said.
Based on the review of the government from November 1 to find the average price of RON95 under Automatic Price Mechanism (APM) down to 2.27 ringgit per liter (Rp8.400) or lower than the current retail price.
The Government will monitor the market price on 20 to 30 November before determining retail prices for December, he said.
On October 1, the government announced a reduction of RON95 and diesel subsidies as much as 20 cents to the price of RON95 to 2.30 ringgit per liter and diesel 2.20 ringgit per liter.
Market price without subsidy for RON95 today is 2.58 ringgit (Rp9,500) per liter and diesel by 2.52 ringgit (Rp9,300) per liter.
On Tuesday (18/11) the government lowered the retail price of RON97 as much as 20 cents per liter from 2.75 ringgit to 2.55 ringgit per liter, following a decline in crude oil prices. (MFD)
