Report: Govt plans to cut subsidised RON95 entitlement to 200 litres from current 300 litres

KUALA LUMPUR (March 26): The federal government is planning to cut the standard monthly entitlement for subsidised RON95 petrol under the Budi95 programme due to the jump in fuel prices caused by the war in Iran.

The Edge reported sources as saying that the government would likely announce a cut in the current 300-litre quota to 200 litres per month.

According to the report, the new quota for the subsidised fuel, priced at RM1.99 per litre, would likely begin next month.

Once consumers exceed the 200-litre limit, they will pay the market-determined floating price.

From today until April 1, the rate is RM3.87 per litre — an increase of 60 sen from the previous RM3.27.

Since March 11, unsubsidised RON95 has increased in price two times, rising a cumulative RM1.20 or 44.94 per cent from RM2.67.

Retail prices for RON97 and diesel in Peninsular Malaysia have also risen over three consecutive weeks with the pump price for RON97 at RM5.15 per litre from today.

This is a total increase of RM1.90 or 58.46 per cent since March 11, when the price was RM3.25.

Similarly, diesel in Peninsular Malaysia is now RM5.52 per litre — an increase of RM2.40 or 76.92 per cent over the same period from RM3.12.

The Edge reported that the quota tightening is seen as a necessary fiscal move as the Ministry of Finance grapples with a subsidy bill that Prime Minister Datuk Seri Anwar Ibrahim recently warned could hit RM24 billion this year if global crude remains above US$110 per barrel.

Before the start of the war, Brent crude was just US$70.84 on Feb 26.