The public can expect further increases in the price of RON95 petrol in the near future as part of the government's efforts to lower the country's burgeoning fuel subsidies.

The move would also help efforts to eradicate petrol smuggling to neighbouring countries, said President of Petroleum Dealers Association of Malaysia (PDAM) Datuk Hashim Othman.

"The smuggling of petrol and diesel was due to fuel being cheaper in Malaysia," he told Bernama.
It was reported that Kedah's Anti-Smuggling Unit (UPP) had last Friday foiled an attempt to smuggle 27,300 litres of subsidised diesel worth RM54,600 to Thailand.

Hashim said the subsidy would ease the burden of the lower- and middle-income groups so that they would be able to adapt to rising prices.

Despite the government's efforts to help people lower their burden through subsidies, he lamented that there were some people who were taking advantage of them.

The PDAM president said by reducing the subsidy, it could somehow discourage those who exercise the fuel smuggling.

The government recently introduced new prices for RON95 and diesel by an extra 20 sen per litre to RM2.10 and RM2.00 from RM1.90 and RM1.80 respectively.

The new prices are still considered cheap versus other countries like Thailand, Indonesia, Singapore and the Philippines.

The PDAM recently proposed that the savings from the reduction in fuel subsidies be used by the government to abolish the road tax and reduce the insurance rate for cars with engine capacity of less than 2,000cc.