The Government announced that, effective 16 July, prices for fuel, specifically petrol, diesel and liquefied petroleum gas (LPG), as well as sugar, will be raised in a move to gradually reduce the Government’s subsidy as set out under the subsidy rationalisation programme. As a result, prices for petrol RON 95 and diesel would be increased by 5 sen or 2.8-2.9% to RM1.85/liter and RM1.75/liter respectively (see Tables 1 & 2), while LPG price would be raised by 10 sen to RM1.85 per kilogramme. As for petrol RON 97, it will no longer be subsidised and the price would be determined by the automatic pricing mechanism. The new price is RM2.10/litre after a 5 sen hike. In the case of sugar, the price would be adjusted upward by 16.7% or 25 sen to RM1.90 per kilogramme. The subsidy rationalisation is expected to save the Government by more than RM750m in 2010. Nevertheless, the Government is still expected to spend an estimated of RM7.82bn on fuel and sugar subsidies in 2010.
Economic Highlights - Fuel And Sugar Prices Were Raised To Reduce - 16/7/2010
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