The price of RON97 grade petrol will cost RM2.40, up 10 sen, from tomorrow onwards in the fourth consecutive increase in half a year.
According to news alerts by various Chinese dailies, the increase in prices would be effective midnight.
Thus far, there is no official announcement but the press has received word of the price increase from petrol dealers. This is the third month in a row in which the price of RON97 had been increased.
The price of RON97, mostly used by high capacity cars, is controlled through a managed float.
The managed float was introduced last year while a new but lower quality grade of petrol, RON95, was also introduced and is currently priced at RM1.90.
Earlier last year, the government through the Performance Management and Delivery Unit (Pemandu) had been trying to prepare the public for cuts in subsidies for essential goods.
Pemandu argued that subsidy cuts, which it dubs "subsidy rationalisations", was necessary to reduce a burgeoning government subsidy bill.
However, critics argue that subsidy cuts would affect the lower income group and cause inflation.
They say that the government should instead go on an austerity drive, swiftly plug leakages and stamp out graft.
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