The pump price for RON97 petrol will be dropped by 13 sen per litre (was RM2.76 to RM2.63 per litre), effective from midnight of June 1 (Saturday), few days before the Hari Raya holidays.

According to the Finance Ministry, due to the Hari Raya holiday season, the fuel prices will be set for the next two weeks by using the Automatic Pricing Mechanism (APM). After June 14, the fuel price will be determined as usual weekly fuel pricing.

The last time that RON97 petrol was priced as low as RM2.63 per litre was in the two weeks following March 30.

At the meantime, pump prices for RON95 petrol and diesel will be set at RM2.08 and RM2.18 per litre although pump prices for both are supposed to be at RM2.33 and RM2.40 per litre respectively.

"Based on the Automatic Pricing Mechanism (APM) calculation, the pump price for RON95 and diesel for the same period is supposed to be RM2.33 per litre and RM2.40 per litre respectively. But pump price for both products have been maintained at RM2.08 per litre and RM2.18 per litre in line with the government's decision to stabilize the pump price for petroleum products to lessen the people's cost of living," the ministry said in a statement.

It added that the government will have to subsidize as much as RM165.27 million to maintain fuel prices for the next two weeks.

Source: www.malaymail.com