RON95 Petrol price increase expected in Malaysia: July or October

Malaysian motorists, brace yourselves. A price increase for RON95 petrol is on the horizon, with experts anticipating a "mild adjustment" to the fuel subsidy in July or October 2024. This comes after the recent removal of the blanket subsidy for diesel, which saw a significant jump in pump prices.

Why the Price Increase?

The Malaysian government is looking to reduce its subsidy burden on fuel. The current global oil prices put a strain on the national budget. By adjusting the subsidy for RON95, the government aims to achieve a balance between managing costs and consumer affordability.

When to Expect the Increase?

There are two possible timelines for the RON95 price adjustment:

• July 2024: This would allow the government to meet its targeted savings for the year.
• October 2024: This timeframe gives more space to assess the impact of the diesel subsidy rationalisation and potentially minimize the impact on consumers.

How Much Will Prices Increase?

Experts predict a "mild adjustment" compared to the recent diesel price hike. The exact increase remains unclear, but it's likely to be lower than the 56% jump seen with diesel.

Impact on Consumers

A RON95 price increase will affect transportation costs and potentially contribute to a rise in inflation. However, the extent of the impact depends on the final adjustment amount.

What to Do?

While the exact date and price increase are unknown, here are some tips to prepare:

• Monitor fuel price updates: Stay informed about any official announcements regarding the RON95 price adjustment.
• Consider fuel-efficient vehicles: If you're planning a car purchase, prioritize fuel efficiency to minimize the impact of price increases.
• Explore alternative transportation options: Look into carpooling, public transportation, or even cycling for short distances to reduce reliance on petrol.

The RON95 price adjustment is a significant development for Malaysian consumers. By staying informed and planning ahead, you can navigate this change and manage your transportation costs effectively.

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