According to Business Times, the Government has briefed oil companies about the move but then again teh oil companies weer also briefed about implementing cleaner diesel some two years ago but we still ahve to buy dirty DERV.
Anyway, if this is true, then we may finally have a system that reflects the real cost of fuel. For a time, If the current economic depression continues to move south, Ron 97 may be cheaper than the other fuels, if just for a few months.
US oil consumption continues to decline in January so expect crude to fetch less this month and next as weather improves and the need for heating oil evaporates with rising spring temperatures. US oil demand rises again in summer to take care of air conditioning needs as well as covering demands for increased holiday travel.
However, if the US economy fails to respond to teh USD800 bilion stimulus package, RON97 may be cheaper than the other regulated fuels… strange but true.
Below is the Business Times article.
Business Times Story
RON 97 petrol price to be floated
By Mustapha Kamil
THE price of premium grade petrol RON 97 will be floated according to international oil prices from July.
It is understood that oil companies briefed their retailers this week that there will also be changes to grades of fuel sold at pumps.
Several retailers said the “regular” grade RON 92 fuel would be phased out and a new grade, RON 95, would be introduced, in addition to RON 97.
The retailers said there would be a subsidy on the price of RON 95 fuel used by a majority of cars in Malaysia.
Diesel would be upgraded to European standards, most probably the Euro 2, allowing the introduction of more vehicle models with advanced diesel engines in Malaysia, they added.
While it remains below the Euro 4M class of diesel fuel, the Euro 2 diesel has significantly lower sulphur content.
National oil company Petronas is expected to lead the way in selling biodiesel fuel.
The other oil companies are expected to follow later.
Malaysia spent some RM40.5 billion on fuel subsidies from 2005 to last year.
The government has been working on a formula to reduce the amount of government subsidy on petrol while keeping negative impact from the swaying international crude oil prices to the minimum.
The retailers said it was also possible that taxes imposed on the premium grade fuel would be used to subsidise the RON 95 price.