First step to reducing fuel subsidies. The Government announced a petrol price hike yesterday evening, including a 5 sen/litre increase in the price for RON95 (+2.8%) and RON97 (+2.4%) petrol, as well as diesel (+2.9%). RON97 price will move to market pricing under a managed float mechanism. The price of Liquid Petroleum Gas (LPG) was raised by 10 sen/kg (+5.7%). LPG is typically used for as a cooking fuel. The fuel pricehike became effective on 16 Jul. We believe this is the Government’s first step towards reducing fuel subsidies although on an even more gradual basis than envisaged by the Government’s Performance Management & Delivery Unit (Pemandu) in its Subsidy Rationalisation proposals in May. Separately, sugar price was raised by 25 sen/kg (+15.2%).
Market Update - Government Measures : Fuel Price Hike - 16/7/2010
No comments:
Post a Comment