KUALA LUMPUR, April 21, 2015:
The increase in global crude oil prices over the past month, coupled with fluctuations in the ringgit value against the US dollar may result in fuel pump prices rising by about 15 sen per litre next month.
This should result in RON95 petrol rising to RM2.10 per litre from RM1.95 now – a price level that has stayed for two months now, since March this year.
The possible hike in RON95 pricing also means a return to the level seen for around a month in September last year as the government fuel subsidy tapered off amid a sharp fall in global crude oil prices. The fuel subsidy was scrapped as of Dec 1 last year.
With the market price managed float pricing regime in place now, diesel too is likely to see a 15 sen increase to RM2.10 per litre and RON97 may go to RM2.40 or even RM2.50.
The actual fuel pump pricing will be fixed by the government only next week and should the ringgit value rise against the US dollar, chances are that the price hike may be only 10 sen per litre rather than the projected 15 sen.
While the government has yet to release details of its monthly pricing formula, the uptrend is clear as the benchmark Brent crude is now trending at around US$63 per barrel compared to the average of US$55 in March.
February prices were the lowest as Brent crude had then averaged around US$45 per barrel.