The prices of Ron 95 and Ron 97 will be going down effectively 12:00 am 1st of December 2014. Ron 95 will be going down four cents while Ron 97 will be going down nine cents.The new Ron 95 will be priced at RM 2.26 per litre while Ron 97 will be priced at RM 2.45 per litre. Prices of diesel however will be going up three cents to RM 2.23 per litre.
Domestic Trade, Cooperative and Consumerism Minister Hasan Malek announced that the price will be valid as of December 2014. There will also be a monthly announcement on new fuel prices as Malaysians will be adjusted to new petrol floating prices as of December 2014 where all fuel subsidies are removed. With the new floating mechanism, fuel prices are bound to rise and fall depending on global crude oil prices. The system will be based on the Ron 97 floating mechanism where subsidy for the fuel was removed as early as 2010. Foreign exchange rate especially conversion between Ringgit and US Dollars will also be taken into account and this will also effect the fuel prices in Malaysia.
Minister Hasan Malek has also urged all petrol stations and oil company to follow the latest retail price set by the ministry. Actions can be taken by the Government to whoever that failed to do so under the Supply Control Act 1961. The Government has previously announced on November that fuel subsidy in Malaysia will be removed.
Globally, the fuel price has dropped significantly since a few months ago. Global crude oil has dropped to 66 USD per barrel which is one of the lowest price in 4 years time when OPEC decided to maintains production target.