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Price Of RON95 Might Drop To RM1.95 To Ease Inflation, Says MIDF

Price Of RON95 Might Drop To RM1.95 To Ease Inflation, Says MIDF

Lowering the price of RON95 likely eases Malaysia’s headline inflation percentage.

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MIDF Research anticipates that the government will cut fuel prices, particularly RON95 petrol and diesel.

The current price of RON95 is RM2.05 per litre but MIDF Research says a 10 sen reduction is possible by next month. Meanwhile, the current price for Euro 5 B10 diesel is RM2.15 per litre.

If the government lowers the price of RON95 to RM1.95 per litre next month, Malaysia’s headline inflation is likely to ease to 2.9% for 2023 as non-food inflation moderates further towards 1.3%, while transport price experiences deeper contraction of -1.7%.

By year-end, the 10 sen cut will bring the monthly headline inflation rate to +1.9% year-on-year (y-o-y).

This also means the government would have an additional RM4.31 billion in fiscal expenditure and it can be used for other objectives.

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