Fourfold increase in RON97 petrol demand, oil companies increasing supply

Fourfold increase in RON97 petrol demand, oil companies increasing supply

PUTRAJAYA - Oil companies are working hard to increase the supply of RON97 to appease public demand, which has increased fourfold since the scrapping of subsidies for RON95 and diesel.

"Oil companies have indicated that the supply in reserves is sufficient to meet the increasing demand for RON97.

"As of Wednesday afternoon, supplies of RON97 were shipped to 105 petrol stations, while 103 stations have not received the supply," Domestic Trade, Cooperatives and Consumerism Ministry secretary-general Datuk Seri Alias Ahmad said in a statement.

On Dec 1, the Government scrapped subsidies for RON95 and diesel, and adopted a managed float system, which resulted in the very low difference between the price of RON95 (RM2.26 (S$0.86) per litre) and RON97 (RM2.46).

This caused many consumers to opt for RON97 with many petrol stations running out of supply.

As of Tuesday, about 208 petrol stations around the country ran out of RON97.

Alias Ahmad said in the statement that oil companies are working hard to implement their respective contingency plans to secure supplies from reserves in other states.

"The Government is also improving enforcement efforts in terms of monitoring petrol stations to ensure that oil companies are able to regulate supplies for RON97, RON95 or diesel.

"The Government expects full commitment from oil companies to ensure that the shipment of RON97 to 'stocked out' petrol stations to goes smoothly and in a timely manner," he added.

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