Unlike the subsidised price of RON95 petrol, RON97 is apparently priced according to a “automatic pricing mechanism”:
RON 97 price up 5 sen and reflects global petrol market price
KUALA LUMPUR: The price of RON 97 is up 5 sen to RM2.15 per litre from Tuesday and reflects the price of petrol in the global market, said Deputy Domestic Trade, Co-operative and Consumerim Minister Datuk Rohani Abdul Karim.
The price of the more widely used RON 95 remains at RM1.85 per litre.
"It was announced on July 16 that the price of Ron 97 will be subjected to a managed float,'' she said this in her reply to Dr Dzulkefly Ahmad (PAS - Kuala Selangor) during Question Time.
A market oriented mechanism is superior to price controls. But even this isn’t sufficient to offset the negative externalities (pollution, congestion, etc) arising from the use of fossil fuels.
Please, tax the stuff.
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