Zafrul said the newly announced price cap for RON95 and diesel is lower compared to the price cap implemented by the previous Pakatan Harapan government in 2019, which is RM2.08 for RON95 and RM2.18 for diesel.
"The government will cover the difference between the actual market price and the weekly retail price that is set weekly through the subsidy allocation," he said. Zafrul said the government decided to introduce the cap because the actual market price for petroleum has been rising, along with the demand for crude oil, which is fuelled by the reopening of various economic sectors in the world.
"The global oil price is also influenced by the Covid-19 vaccination plan that is beginning to gradually take off around the world.Zafrul assured that the government is committed to reduce the cost of living and it will always monitor the effects of changes in global crude oil prices. "We will also take appropriate measures to balance government subsidies and the need to maintain the welfare and well-being of the people," he added.