RON97 up 14 sen this week after oil attack in Saudi

Kenneth Tee
Customers are seen at a petrol station in Puchong Permai December 27, 2018. — Picture by Miera Zulyana

KUALA LUMPUR, Sept 20 — The retail price of RON97 is set to increase by 14 sen per litre from RM2.53 per litre to RM2.67 per litre for the September 21 to 27 period.

The Finance Ministry today also announced that the retail prices of RON95 and diesel will remain as RM2.08 and RM2.18 per litre respectively for the same period.

Based on calculations under the Automatic Pricing Mechanism (APM), the retail prices of RON95 and diesel products for the period should have been RM2.37 and RM2.32 per litre respectively.

“The increase in retail prices of petroleum is believed to follow the attack against two oil refineries in Saudi Arabia on September 14 which has disrupted output and exports of the country,” it said in a statement here.

On September 14, two major facilities run by Saudi Arabia’s state oil giant, Saudi Aramco, were targeted by a drone attack believed to have been launched by Yemen’s Houthi rebel group.

However, the ministry said the government will continue to provide subsidies to offset the price hikes following the attacks in line with Prime Minister Tun Dr Mahathir Mohamad’s statement on September 15.

“Therefore the retail prices of both RON95 and diesel will be maintained at RM2.08 per litre and RM2.18 per litre,” it added.

Thus the estimated subsidy absorbed by the government for the September 21 to 27 period amounts to RM123.16 million.

Related Articles Petronas to enhance critical facilities security following Saudi oil attacks Real crunch from Saudi Arabia’s oil outage has yet to be felt Pompeo heads to Saudi Arabia after US blames Iran