Petrol, Diesel, LPG And Sugar Price Hikes
The price of fuel and sugar will go up from midnight tonight as part of the Najib administration’s ongoing drive to reduce subsidies, but it is fraught with political risks as he mulls early elections next year.
The price of RON95 will increase by five sen to RM1.90 per litre, diesel by five sen per litre to RM1.80 and liquefied petroleum gas (LPG) by five sen to RM1.90 per kg. Sugar will also cost 20 sen more at RM2.10 per kg.
Through these price hikes, the government expects to save subsidy payments of RM621.9 million on RON95, RM213.2 million on diesel, RM63.5 million on LPG and RM283.5 million on sugar a year, or a total of RM1.18 billion annually.
RON97 will remain on a managed float based on market prices.
This is the second wave of subsidy cuts following the first round of hikes on July 16, when prices went up by five sen per litre for petrol and diesel, 10 sen per kg for LPG and 20 sen per kg for sugar.
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