No additional budget in capping RON95 petrol retail price — Guan Eng

PUTRAJAYA (Feb 28): The capping of the retail price of RON95 petrol at RM2.08 per litre will not involve additional budget, Finance Minister Lim Guan Eng said today.

He said the Cabinet made the decision after taking into consideration the financial capability as a result of the thrift exercised by the PH Government.

“The setting of the ceiling price for RON95 petrol is within the nation’s financial capability based on the savings through efficient and transparent administration.

“I feel we are able to do it because if we look at the (financial) performance that we have achieved thus far, we have some savings,” he said when explaining whether the decision would involve a financial implication following additional subsidy due to the capping at a lower price.

Lim announced yesterday that the retail price of RON95 petrol had been capped at RM2.08 per litre, much lower than the previous cap of RM2.20.

Speaking to reporters today after presenting a RM5-million allocation to Yayasan Restu for managing the printing and distribution of the Quran by the Nasyrul Quran Complex here, he said the decision was made after taking into account the current rising trend of the actual market prices of petroleum products.

Asked whether the capping was for a specific period, Lim said it still depended on the current market price but, more importantly, it was a major measure to reduce the financial burden of the people in facing the issue of the cost of living.

On another matter, Lim said the period for submission of tenders for the rental or lease of official vehicles for the government ended today.

The six-month extension given to concessionaire Spanco Sdn Bhd for the purpose ended on Dec 31, 2018, he added.

Spanco was given the concession on Oct 30, 1993.

Source : TheEdgeMarkets