PUTRAJAYA has lowered the cap on RON95 and diesel prices following a drop in global oil prices, said.

Finance Minister Lim Guan Eng said in the coming week, RON95 would be sold at RM2.04 per litre, down 4 sen from the capped price of RM2.08 per litre.

Diesel will be priced at RM2.08 per litre, down by 10 sen from the capped rate of RM2.18 per litre.

The price of RON97, meanwhile, will reduce by 7 sen to RM2.34 per litre.

The prices are applicable on February 8 to 14.

The higher price caps will return when global oil prices go up.

The difference between the ceiling price and the actual price is borne by the government.

“That’s why the government paid RM6 billion in subsidies for petrol and liquefied petroleum gas,” Lim said at a press conference in Putrajaya.

The automatic pricing mechanism is used to determine pump prices based on global crude oil prices

On whether the price cap will be revised, Lim said the price cap is already very low.

On a separate note, he noted that the fluctuation of crude oil prices may have an impact on the fiscal stimulus package, but the impact has to be gauged from a yearly perspective.

“We have fulfilled our promise,” he said while referring to the government’s efforts to stabilise petrol prices.

Meanwhile, Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail who was also at the press conference said the petrol subsidy programme is still being fine tuned by both ministries. – February 7, 2020.