PKR secretary-general Rafizi Ramli said Putrajaya ought to set the price for RON95 petrol at RM1.62 per litre for the month of February.

In a press release today, Rafizi said this figure would reflect the average market price of RON95 petrol in Malaysia, as determined by the Mean of Platts Singapore (MOPS).

"If subsidies are restored, as sought by PKR, then prices would only be RM1.32 a litre," he said.
 
There is increasing speculation that fuel prices will be lowered by Feb 1, in line with freefalling crude oil prices.

Industry insiders have told Malaysiakini that they expect Putrajaya to peg RON95 at RM1.63 per litre and diesel at RM1.62 per litre.

Putrajaya had removed petrol and diesel subsidies last month after crude oil prices hit record lows. A new "managed float" pricing mechanism was then introduced.

Currently, the price of a litre of RON95 is RM1.91 while diesel is priced at RM1.93 a litre.

If RON95 retails below RM1.75 a litre, it will be the lowest for the petrol since RON95 was introduced in 2009.

'Show us your formula'

Meanwhile, Rafizi claimed that Putrajaya had collected a whopping RM1.15 billion in "fuel tax" because fuel was being sold above market prices between December and January.
 
His argument was based on MOPS prices, daily exchange rates and government provided consumption data.
 
Rafizi's calculation had assumed that the correct market price for a litre of RON95 fuel had fluctuated between RM1.75 and RM1.49 between January 1 and 28, while the market price for a litre of diesel was between RM1.80 and RM1.55 during the same period.
 
However, Putrajaya had set a price of RM1.91 per litre for RON95 and RM1.93 per litre for diesel for the month of January.
 
In view of this, Rafizi, who provided day-by-day calculations in his press release, argued that consumers have been effectively paying Putrajaya a "fuel tax".
 
"Because the people have paid a higher price for fuel compared to market rates, even without subsidies, BN had a windfall from collecting fuel taxes without telling the public," said Rafizi.
 
He also challenged Putrajaya to refute his claims and publicise the formula used to determine fuel prices.
 
In his statement, the Pandan MP reiterated demands for Prime Minister Najib Abdul Razak to stop the collection of the "fuel tax" and establish a "fuel price stabilisation fund" with the sum that has already been collected. 
 
He also suggested that fuel prices be reviewed weekly instead to prevent consumers from having to pay more than the market rate.
 
"By having an additional tax on the public through fuel consumption at a time when the economy is worsening only reflects Najib's desperation in terms of financial management," he said.