After the big adjustment in retail prices of fuel last Friday, the second revision following the reversion to weekly changes sees a tiny change for pump prices during the next 7 days. Both RON95 and RON97 petrol will drop by 1 sen after midnight tonight, to RM1.92 and RM2.22 per litre, respectively.

Diesel, however, will be 1 sen higher so refueling a completely empty fuel tank of a Ford Ranger would cost 80 sen more at RM2.04 a litre. If you want to give your diesel engine cleaner, better fuel, then use the Euro5 grade which is sold by BHPetrol and other brands. It costs 10 sen more per litre but your engine will run more efficiently and give smoother performance.

While prices may go up in coming weeks, the government has promised to cap the pump prices of RON95 at RM2.20 per litre and diesel at RM2.18 per litre, using subsidies when necessary. This, however, is not going on forever as there are plans to implement more targeted fuel subsidies to benefit those who really need assistance. Those who can afford expensive models would not be in need of fuel at subsidised prices.

There is still the issue of petrol station operators incurring losses whenever the prices drop. This is because they may have stocks for which they have paid a higher price the week before but must sell at a lower price when the government announces a reduction. Understandably, it is challenging for them although they would also make profits when the reverse happens.

[Chips Yap]

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