PUTRAJAYA: The price of premium grade petrol RON97 will be increased when the Government introduces RON95 to replace RON92 in July.
Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said this would encourage more people to use RON95.
“The Government intends to subsidise more on RON95 to make it the same price with RON92,” he told a press conference yesterday.
The prices of RON95 and RON97 would be known in July.
Currently, Shahrir said, 80% of motorists used RON97 and the others RON92.
“In fact, RON92 is suitable for most vehicles but it is not as popular as RON97.
“Our way is to subsidise more of RON95 and reduce the subsidy for RON97 so that more consumers will opt for the former,” he said.
However, he said the Government did not plan to float the price of RON97.
“We will increase the price of RON97 reasonably when RON95 is introduced but if we use the floating system for RON97, its price will immediately increase by 50 sen,” he said.
On the consumer price index (CPI), Shahrir said it had decreased by 0.1% last month compared to December and showed an increment of 3.9% to 111.7 compared to 107.5 in the same period last year.
He said the index for food and non-alcoholic beverages increased by 9.8% last month, compared to the same period in 2008 while the index for non-food items went up by 1.1%.
He said the 3.9% increase in the CPI was brought about by increases in the indices of all the main groups, except transport, clothing and footwear and communication which decreased by 2.1%, 0.8% and 0.5% respectively.
Shahrir said the CPI was expected to go down further by the first quarter of the year.
“However, we have no control over restaurants and I don’t blame them because they still get good business when they increase their prices,” he said.