Published on March 16th, 2022 | by Amirul Mukminin0
Fuel Prices Continue To Soar – Time To Buy An EV?
The price of RON95 remains thanks to fuel subsidy but it might not be for long
Today, the Ministry of Finance announced the retail prices for the week of 17 to 23 March and as you can see, RON97 petrol continues to reflect the current economic uncertainty caused by the Russia-Ukraine crisis with an increase of 25 sen to bring the price to a whopping RM4 per litre.
Meanwhile, there’s no change to the price of RON95 petrol as it remains at RM2.05 per litre thanks to government subsidies. Similarly, diesel will continue to be priced at RM2.15 per litre. While most Malaysian motorists can breathe a sigh of relief for now, Finance Minister Tengku Zafrul Aziz has said that the government will review the current fuel subsidy in favour of a targeted programme for the needy.
He added that crude oil prices have been rising significantly since last year and the government could be paying up to RM28 billion in subsidies for petrol, diesel and liquified petroleum gases (LPG) this year due to the Russian-Ukrainian war.
As in many cases, the middle income class will be hit the hardest should the government decide to reduce fuel subsidy and implement targeted programmes. Will this prompt more Malaysians in said group to buy an electric vehicle?
With the rising fuel prices and the exemption of tax and duties, as well as road tax, there couldn’t be a better time to consider jumping on the EV bandwagon. In terms of availability, we are not exactly spoilt for choice at the moment but there are several sub-RM200k new EV models in the market such as the Hyundai Kona Electric, Hyundai IONIQ 5 and Nissan LEAF.
And if you’re in the market for used units, there are currently two units of Renault ZOE for sale on the Comos website, both priced below RM70,000.
Needless to say, owning an EV has its hurdles – high purchase price, cost of charging, lack of infrastructure and range anxiety, to name a few – but it could very well turn out to be economically beneficial in the long term. Just think of the fuel you save doing those school and grocery runs or travelling to and from work in an EV.