The Malaysian Insider – 1 hour 57 minutes ago
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- Diesel price increase due to previously paid out subsidy, says Hasan Malek
The three sen increase in the retail price of diesel today was due to a large amount of subsidy previously paid out by Putrajaya, said Datuk Seri Hasan Malek.
The Domestic Trade, Cooperatives and Consumerism minister told Bernama today this was the reason Putrajaya was unable to lower the price of diesel although the price of RON95 petrol without subsidy has been reduced to RM2.26 and RON97 to RM2.46.
Diesel, although still cheaper, rose to RM2.23 as of today, from RM2.20 previously.
"With regards to diesel pricing, it was due to the large amount of subsidy given out before. Because of that, after discussions, we can't lower the price just yet.
"Based on the float system used, there is no choice but to raise the price," he told reporters in Kampar, Perak today.
Hasan, however, assured consumer not to be overly worried over the increase as the price would fluctuate further in the coming months.
He said the government would also monitor the world oil prices and revise local prices every month.
It was reported today that many were caught by surprise when the pump price for diesel, instead of getting cheaper, had increased by three sen after Putrajaya introduced a float system, similar to the mechanism dictating the RON97 petrol price since July 2010.
This, however, did not go down well with the opposition, claiming that the new unsubsidised prices do not reflect world oil prices and showed that Putrajaya was manipulating retail prices for fuel.
Pandan MP Rafizi Ramli of PKR said today the new fuel prices which came into effect today did not reflect current global prices as the price of crude oil has slumped to US$68 (RM233.61) per barrel, the lowest since 2010. – December 1, 2014.
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