PETALING JAYA: Questions are mounting over the recent fuel pricing mechanism after diesel prices spiked by exactly 80 sen on three separate occasions in just three weeks, reaching RM5.52 per litre, says Datuk Seri Dr Wee Ka Siong.
The MCA president questioned whether the exact increments were a coincidence or a result of the previously announced Automatic Pricing Mechanism (APM) formula.
“Every time it goes up, it is exactly 80 sen, no more, no less. Is this a coincidence?
“If calculated using the APM formula, it is impossible to round it off to exactly 80 sen. Has the formula changed, or has a tax component been added without our knowledge?” he asked.
Dr Wee made the remarks in a video posted on Facebook yesterday, stressing the need for immediate government clarification on the pricing structure.
He said many people are frustrated by rising costs and that his aim is to seek transparency over these sudden and drastic hikes.
“I want to highlight two things: why this sharp increase in diesel prices was unnecessary, and what the government should be doing instead,” he said.
Introduced in 1983, the APM is designed to stabilise retail fuel prices and shield consumers from global oil market volatility.
The formula determines the true cost of fuel using the Mean of Platts Singapore benchmark, which reflects the average daily price of refined petroleum products traded in the Singapore oil hub.
Fixed operational costs, transport charges, and regulated profit margins for oil companies and station dealers are then added to calculate the final unsubsidised retail price.
Before Iran’s closure of the Strait of Hormuz, diesel in Peninsular Malaysia was priced at RM3.04 per litre, while prices in Sabah and Sarawak remain at RM2.15 per litre.
