Finance Minister Lim Guan Eng today announced that the ceiling price of RON95 petrol will be reduced from RM2.20 to RM2.08 per litre.
He said the cabinet meeting today had considered the increase of global oil price in deciding to lower the ceiling price.
"This means the price of RON95 will be capped at RM2.08 per litre even if global oil price increases beyond that," Lim said in a statement.
At present, the retail price of RON95 petrol is at RM2.08 per litre, while RON97 at RM2.38 per litre and diesel RM2.18.
The ceiling price for diesel remains the same at RM2.18 per litre. There is no ceiling price for RON97.
Lim said the mechanism is aimed at protecting the B40 income earners.
He added that fuel prices will continue to be determined on a weekly basis until a targeted subsidy system is introduced in the middle of the year.