Is the fuel price hike really justified?

FACT CHECK The price of RON95, the most commonly used fuel by Malaysian motorists, went up by 20 sen two months in a row to RM2.30 per litre.

The hike immediately sparked a war of words between Petaling Jaya Utara MP Tony Pua and the BN Strategic Communications Team.

Malaysiakini, having sifted through the statements of the two, which were tinged with contempt for each other, found they were pretty much on the same page in terms of the projected RON95 price for January and February.

Both BN and Pua agreed that the actual price of one litre of RON95 fuel for January was RM2.19. But for February, BN puts the figure at RM2.26 while Pua puts it at RM2.23 - a three sen difference.

Before delving into the details of the argument, let's take a look at the justification of the RM2.30 retail price for RON95 this month.

Are we paying higher than market price this month?

Yes, the retail price of RON95 at RM2.30 this month is higher than the price as determined by the automatic pricing mechanism (APM).

Consumers are paying four sen more, according to BN's calculation. According to Pua, it’s seven sen more...