After a drop last week, petrol prices rise again as an increase of 4 sen has been set for the latest adjustment, effective after midnight tonight. This pushes the price of a litre of RON95 petrol to RM2.30 with RON97 (formulated to Euro-4M) rising to RM2.57 a litre.
This is the first time after 6 weeks that RON95 petrol has hit RM2.30, the level in early December 2017. RON97 has been above RM2.50 a litre since the end of October, reaching as high as RM2.66 a litre in the second half of November.
Owners of diesel vehicles will be relieved that a litre of Euro-2M diesel continues to be RM2.32 as there is no adjustment to the previous price level. Price stability, which was the case when fuel prices were subsidised, is important for fleet operators and businesses. They need to plan budgets for running costs and fluctuations can be frustrating. As it is, they are paying 9 sen more per litre this month compared to the average for December 2017.
The ringgit is gaining strength lately but it fluctuates too, and besides the exchange rate, there are other factors which are considered when determining each week’s price level.
Fuel prices were subsidised for years, keeping them low and stable for longer periods. However, this proved a heavy burden for the government so it had to stop the subsidies. While removal of subsidies has seen pump prices rising, it is something which motorists have to face as the real cost of motoring. Like motorists in other countries who pay high prices for their fuel, personal efforts have to be made to reduce consumption and thereby reduce the amount of fuel that needs to be purchased in a month.