Formula to calculate Ron 95 and Diesel price to be revealed

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hassan malekDomestic Trade, Cooperative and Consumerism Minister Hasan Malek announced recently announced that the formula to calculate Ron 95 and Diesel prices will be revealed to the public soon. The ministry is currently seeking approval from the Ministry of Finance for the simplified version of the formula to be made public on the ministry website. The calculation of the fuel price is complex however it would be better for public to understand it.

Currently Malaysian Fuel price is calculated based on APM (Automatic pricing mechanism). The calculation method has been in place since early 1980s and is being used to stabilise fuel prices in Malaysia. The ministry has also added that the calculation for Ron 95 and diesel will be slightly different as fuel subsidy for Ron 95 and Diesel has been removed. Certain quarters have also questioned whether sales tax was imposed to the Ron 95 fule.

On 1st of December, Malaysian Government has effectively removed all fuel subsidy on Ron 95 and Diesel fuel in Malaysia .The recent Diesel price increment has sparked questions as the Global Crude Oil price continues to fall. While the prices on Ron 95 has fallen, many consumer has opted for Ron 95 instead as the price different between these two fuel are not hight. This has caused major Ron 97 petrol shortage on all the pump across Malaysia. The government has reiterate and increased the supply of Ron 97 fuel to address this issue.