In the new fuel prices effective on Sunday, RON 95 and RON 97 are priced at RM 2.26 and RM 2.46 respectively. There is only a difference of 20 sen between the two petrol types.
Under the managed float system, both RON 95 and 97 receive zero government subsidy, but as revealed by former Domestic Trade, Cooperatives and Consumerism Minister Datuk Ismail Sari Yaakob two years ago, a sales tax of 58 sen per litre has always been imposed on the premium grade RON 97.
So why is it that RON 95, being a lower grade type and with no sales tax imposed, is not priced much lower than RON 97?
This is a question that Deputy Finance Minister Datuk Ahmad Maslan and Domestic Trade, Cooperatives and Consumerism Datuk Seri Hasan Malek will have to explain to the public.
Could it be that a sales tax of 58 sen has been quietly imposed on RON 95 on Dec 1?
On Oct 31, Ahmad Maslan has said that if the global crude oil price continued to fall, one option would be for the government to choose to reduce the price of RON 95 and impose a sale tax of 58 sen.
Subsequently on November 17, after attending a briefing on the GST in Melaka, he was quoted to say the following:-.
“I will make a recommendation to the Fiscal Policy Committee to reduce the price of RON95 petrol if the price of global crude oil continues to drop. I will also propose that no sales tax be imposed on the purchase of RON95 when its price is reduced in the future”.
Then on November 21, Datuk Seri Hasan announced that the Cabinet has decided that from Dec 1, RON95 petrol and diesel prices will be set according to the managed float system.
He said the managed float system which was decided by the cabinet, is the same system used to set the retail price of RON 97 petrol since July 2010.
There has been no subsequent announcement from Maslan if his proposal not to impose sales tax on RON 95 has been accepted.
If no sales tax has been imposed on RON 95, then why its new price effective on Dec 1 is not much lower than that of RON 97?
If sales tax has been imposed, why was there no announcement?
And if sales tax , whether imposed or otherwise, is not a main factor why RON 95 cannot be priced lower than the announced price of RM 2.26 per litre, Datuk Seri Hasan Malek must explain what are the real factors.