RON 97 price up 5 sen; reflects global petrol market price

KUALA LUMPUR: The price of RON 97 is up 5 sen to RM2.15 per litre from Tuesday and reflects the price of petrol in the global market, said Deputy Domestic Trade, Co-operative and Consumerism Minister Datuk Rohani Abdul Karim.

The price of the more widely used RON 95 remains at RM1.85 per litre.

"It was announced on July 16 that the price of Ron 97 will be subjected to a managed float,'' she said this in her reply to Dr Dzulkefly Ahmad (PAS - Kuala Selangor) during Question Time.

Dr Zulkefly had asked whether the enforcement division of the ministry monitored the price increase of essential goods in his original question.

Before asking the supplementary question, Dr Dzulkefly also said that the increase of price for RON 97 - five sen per litre - would create an impact on people.

"Those who use the petrol will feel the impact,'' he said.

Rohani said the price would be determined by the world market and announcements would not be made in the future about price changes.

"When the price declines, please also raise the matter and express your gratitude,'' she told Dr Dzulkefly.

It was reported on July 16 that the government had decided to withdraw the petrol subsidy for RON 97 and subject it to a managed float.

Price of RON 97 would be determined by an automatic pricing mechanism.

RON 97 price hike hits high-end users

PETALING JAYA: The five-sen hike of RON 97 petrol to RM2.15 per litre from 2 November 2010 has mostly affected a small group of luxury car owners and those who favour its performance capabilities compared to the more affordable RON 95 which is still sold at RM1.85 per litre.

Animation designer Joey Khor, 32, who drives a 3.5-litre Nissan Fairlady sports car, said he might have to sell his car if the petrol cost becomes too hard to bear.

“I am already spending RM150 for a full tank, which will last me around three to four days. That means RM300 in a week, and RM1,200 spent on petrol in a month,” he added.

Car mechanic Novie Ismail, 34, said he spends about RM400 a month on petrol for his three cars: Volvo 24 SE, Proton Satria and Charade Aura.

“I’ll just have to bear with the RON 97 price hike as I feel that RON 95 affects the performance of my cars. The engines sound rougher and generate less power,” he said.

Meanwhile, Petrol Dealers Association Malaysia president Datuk Hashim Othman said the price increase was a natural consequence of rising oil prices in the international market.

He estimated that about 75% to 80% of motorists were RON 95 users and would thus remain unaffected.

“Don’t be too upset by the controlled float (of RON 97), as the Government plays an important role in ensuring that the oil companies do not hike petrol prices drastically,” said Hashim, pointing out that RON 97 sells for around RM3.80 per litre in Thailand.

“The public should be aware that the Government does not impose any tax on the sale of RON 97 but does not subsidise it either,” he said.

The previous petrol price hike, which took effect on July 16, was part of the Government’s effort to save an estimated RM750 million a year.

Deputy Domestic Trade, Co-operatives and Consumerism Minister Datuk Rohani Abdul Karim told the Dewan Rakyat that the price increase reflected the global price increase of fuel and announcements would not be made in the future about price changes.

She added that a committee comprising officials from the Finance Ministry and her ministry would monitor and determine the price since RON 97 was subjected to a managed float.