PETALING JAYA - Malaysia will raise prices of petrol and diesel by 20 sen (8 Singapore cents) from midnight on Wednesday.
The decision to reduce current fuel subsidy was taken in keeping with the subsidy rationalisation plan to ensure the nation's finances remain strong, the Domestic Trade, Cooperatives and Consumerism Ministry said in a statement.
As per the new prices, RON95 petrol will cost RM2.30 per litre while diesel will cost RM2.20 per litre.
"Despite the increase, the government will still need to spend more than RM21 billion on fuel and LPG subsidies for this year," the statement added.
It said the government also aims to curb smuggling and ensuring that the current subsidy is not misused.