Credits To: Star Motoring
So, effective today, the subsidisation of petrol - as well as that of sugar - has been reduced, the first step in a gradual implementation of a broad rationalisation effort, as the Government says.
Pricing at the pump for RON 95 petrol is up by 5sen to RM1.85 per litre, as is the case for diesel, up 5sen to RM1.75 per litre. As for LPG, this has gone up 10sen to RM1.85 per kg.
RON 97 will no longer be subsidised, and will be subjected not to a free float, but rather a managed float, where the price will be determined by the automatic pricing mechanism, according to details contained in the full press statement issued by the Prime Minister's office.
A check at a Shell station in the early hours of July 16 revealed the price of RON 97 at the pump to have also gone up by 5sen, to RM2.10 a litre. Meanwhile, Shell's V-Power Racing (not V-Power 97), an unregulated fuel in the overall scheme of things, is now priced at RM2.48 per litre.
It'll be interesting to see the workings and dynamics of this managed float system for RON 97 as things unfold, and how much the pricing will be allowed to float freely between upper (ceiling) and lower (floor) borders - which is presumably the current pump price for the latter - before intervention comes into play, if it does as such a system allows.