THE government has projected that it will spend up to RM3 billion this year on fuel subsidies, said Finance Minister Lim Guan Eng.

“For both diesel and RON95 fuel, we have estimated a subsidy payment of around RM3 billion. The amount could be less, depending on global oil prices.

“In our projections, we estimate around RM3 billion. Until the end of this year,” he told reporters in Putrajaya today, when asked to detail the costs.

Since May 30, the retail prices of RON95 and diesel have been fixed at RM2.20 and RM2.18 per litre, respectively. The high-octane RON97 fuel is floated on a weekly basis, and is currently priced at RM2.59 per litre.

The government has announced that it will subsidise 33 sen per litre for all retail purchases of RON95 and diesel.

Global crude oil prices have reached US$76 (RM304) per barrel, while refined petrol and diesel products are currently priced at between US$87 and US$88 per barrel.

Lim said to “wait until the end of the year” for an accurate figure, given the weekly fluctuations.

Asked whether the government would further increase subsidies, he said: “Now, oil prices have gone up. Now you ask about lowering the prices. That would be a bit difficult.

“Oil prices have shot up. We will still maintain prices.

“This is a subsidy by the federal government that was not given by the previous government. RON97 is different. It’s for cars that are technologically advanced, luxurious and more expensive.

“I don’t think it would be a problem to continue floating (RON97) prices.”

According to the Malaysia Automotive Association, there are 28.2 million registered vehicles in the country as at June last year – nearly a vehicle per person. – June 21, 2018.