KUCHING: The retail price of fuel in the coming months should decrease to reflect the global price of crude oil and strength of the ringgit.
Stampin MP Julian Tan said if these two factors were anything to go by, the retail price of RON95, RON97 and diesel for July should be lower than February in comparison.
The global crude oil price has plunged nearly 20 per cent this month and briefly dipped below US$47 a barrel on Tuesday. In February, oil was priced between US$58 and US$60 per barrel.
The retail price of RON95 and RON97 in February was RM1.70 and RM2 per litre respectively, while the retail price of diesel was RM1.70 a litre. Retail price of RON95 this month is RM2.15 per litre and RON97 at RM2.55 a litre after the goods and services tax (GST). The price of diesel is RM2.05 a litre.
Tan thus questioned why retail price of fuel products in Malaysia was higher this month despite the lower global crude oil price.
“This is especially so considering that the performance of the ringgit is not far off, at RM2.60 to the US dollar in February compared to an average of RM3.80 per dollar this month.”
He expected the retail price for these fuel products to decrease in August.
“The retail price of fuel products in this country depends on the price of global crude oil price. The oil price fluctuates between US$58 and US$59 in February but plunged to US$48 per barrel in July.
“The government said they remove subsidies to follow market rate. It is high time that the retail price of fuel is dropped accordingly and should be lower than the price in February,” he told a press conference at DAP Stampin office here yesterday.
Tan also questioned the increase in the nation’s retail fuel price last month despite the global oil price in June was almost similar to that in February. If the situation persists, the people would end up subsidising the fuel on behalf of the government.
On Nov 21 last year, the government announced that from Dec 1, 2014, it would fix the retail price of RON95 petrol and diesel according to the controlled flotation method after scrapping subsidies for the two fuel products. The managed float system is the same used to set the retail price of RON97 since July 2010.
The government would keep track of the market price of the product and exchange rates each time before fixing the retail price of petrol and diesel for the following months- Borneo Post
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