PUTRAJAYA, Nov 21 – Beginning Dec 1, fuel subsidies for RON95 and diesel will be removed following the implementation of a managed float system similar to that used on RON97. In announcing this today, Domestic Trade, Cooperatives and Consumerism Minister Datuk Sri Hasan Malek said the decision was made following a cabinet meeting held earlier today.
“Through the managed float system, the average change in the cost of the product will determine the price (of fuel) of the following month. “For example, under the Automated Price Mechanism, the average price of RON95 from Nov 1 until 19 was set at RM2.27 per litre, lower than the retail price of RM2.30 per litre,” he said. “If this trend continues, the retail fuel price will be lower in December,” he said, adding that the government would monitor market prices until Nov 30 to determine the average retail fuel price for December.