Not a great start to the new year as RON95 goes up 20 sen… despite a slightly stronger ringgit and somewhat steady global oil prices in January 2017.
Malaysian fuel prices are supposed to be on a “managed float” system since the removal of subsidies in 2014. Back then it was announced:
Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek, who announced the Cabinet’s decision on this yesterday, said the average price difference in the cost of the fuels in a month would determine the retail prices for the following month.
“This means, if the price of world crude oil increases, so will retail prices of RON95 and diesel and vice-versa. We monitor the world oil price every day to get the average price.
Let’s see how they explain this one.
Now I know we should be moving away from private motor vehicles, but with public transport still not up to the mark for commuting to work in most places, it is another heavy burden on people working outside their homes.
Even before these latest price hikes, the price of a cup of coffee at a local food court in Penang had gone up 10 sen this morning. So you can imagine what this fuel price hike will do to the price of street food and groceries across the country.