Malaysia’s huge fuel subsidy bill, estimated at RM20 billion last year, is overdue for an overhaul. While reforms are imminent, few expect any of it can happen until the general election (GE) is over.
An indication of how far off we are from real market prices is plainly seen at the pumps.
Last week, the price of the market-driven RON97 petrol blend was increased by 10 sen to RM2.90 a litre. The more widely-used RON95 blend and diesel selling prices were kept at RM1.90 a litre.
It was estimated that the cost of petrol is at least RM2.80 a litre based on the crude oil price of US$120 a barrel.