KUALA LUMPUR (Sept 23): Malaysia will introduce another two pump prices for RON95 petrol which will kick off later this month on top of the subsidised allocation announced earlier.

While Malaysian drivers will get an allocation of 300 litres of RON95 at RM1.99 per litre each month, eligible public and commercial vehicles will be allowed to purchase the fuel at RM2.05 per litre, Finance Minister II Datuk Seri Amir Hamzah Azizan said at a briefing on Tuesday.

For non-Malaysians and non-eligible commercial vehicles, they will purchase RON95 petrol at pricing based on the automatic pricing mechanism currently estimated at RM2.60 per litre.

All vehicles with foreign registration plates will not be allowed to purchase RON95 fuel, as currently practised.

The government decided not to fully float the RON95 prices at the pumps to avoid fuelling inflation and raising the cost of living, according to the minister and the presentation slide at the briefing.

The government spent about RM18 billion last year to subsidise 18 billion litres of RON95, the most widely used petrol grade, when Brent averaged above US$80 (RM335.88) per barrel. This year, the benchmark for crude oil is averaging below US$70 per barrel.

The savings will come from excluding foreigners residing in Malaysia as well as non-eligible businesses, which together consume about 22% of RON95 in the country, according to the ministry.

Just 0.7% of current Malaysian drivers fall outside of the subsidy allocation of 300 litres a month, Amir Hamzah said.

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