PETALING JAYA: Soon, Malaysians will pay less at the pump for RON95 - a development they have been waiting for since the Prime Minister's announcement two months ago.
In July, Datuk Seri Anwar Ibrahim had said the rakyat will pay for cheaper RON95 petrol at RM1.99 per litre, compared to the current RM2.05, under a targeted subsidy scheme.
Called the Budi Madani RON95 (BUDI95) programme, Anwar said on Monday that all Malaysians with a valid driving licence are eligible for the subsidy, while foreigners will have to pay the non-subsidised price of about RM2.60 per litre.
The initiative, to start next Tuesday (Sept 30), will benefit more than 16 million motorists - each will be allowed 300 litres of the cheaper fuel per month.
As Malaysia waits for the new price to kick off, we explore fun facts about the fuel, trace its origins and go through its ups and downs throughout the years.
Scroll to the end of this story and use our calculator to see how much you will save with the new price, as well as how many litres of RON95 you normally use.
A new fuel is born
The RON95 fuel was first introduced in 2009 - a replacement for the RON92 grade petrol which was discontinued.
Known to be more environmentally friendly, car manufacturers at that time also said RON95 was suitable to be used by most cars on the road.
Here’s more trivia about the widely used fuel in Malaysia:
The ups and downs of RON95
The price of RON95 has seen its fair share of spikes and drops throughout the years.
It is affected by world crude oil price fluctuations, while government decisions also influence the price at the pump.
Such decisions by the government include setting ceiling prices and providing subsidies through the Automatic Pricing Mechanism (APM) - a system introduced in 1983.
The APM allows the government to monitor the effects of changes in global crude oil prices and adjust retail fuel prices to ensure it remains affordable for the rakyat, said an explanation on data.gov.my, Malaysia's official open data portal.
See how these elements influenced the price of RON95 in the chart below.
Click on the arrow buttons below to see the next image:
How much will you save?
With the latest developments on RON95, many are hoping they will be able to save on fuel costs soon.
“Slashing the price to RM1.99 per litre is a positive gesture and will help motorists, although the amount of savings is modest,” said Petroleum Dealers Association of Malaysia president Datuk Khairul Annuar Abdul Aziz in an interview.
“In practice, prices of goods and services rarely fall when fuel prices are reduced, so the broader cost-of-living impact may be limited,” he added.
Nevertheless, he said the association welcomed the price cut, as it reflected the government’s commitment to easing the rakyat’s burden.
“We are supportive of the government’s decision and will ensure that operations continue smoothly,” Khairul Annuar said.
On whether the demand for RON95 was affected by more Malaysians using electric vehicles (EV), he said the demand has remained consistent.
“EV adoption is increasing but still small in proportion, so petrol remains the dominant fuel for Malaysian motorists,” he said.
Want to know how much you stand to save with the new RON95 price?
Answer the questions in the calculator below to find out:
