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Prime Minister Datuk Seri Najib Razak has confirmed in today's Malaysia Budget 2015 announcement that RON 95, diesel and LPG will be exempted from the Goods and Services Tax (GST) that will come into effect in April 2015. This brings to a close various rumours on the matter over the past few months.

With this announcement, RON 95, diesel and LPG will stay at their current prices (RM2.30, RM2.20 and RM1.90 per litre/kg respectively), at least until the next fuel price revision. Not surprisingly, RON 97 was not mentioned, so it's safe to assume that the premium unregulated fuel will be subjected to the 6% GST come April, effectively raising the price from RM2.75 to RM2.92.

As for the much-talked about subsidy rationalisation plan of petrol, diesel and LPG, Najib Razak mentioned that it will be implemented in stages, with the government mechanism to be officially announced "in the near future." Last we heard, the subsidy rationalisation of diesel is expected in January, while the plan for petrol will follow at a later date.

On a side note, since the 1Malaysia People's Aid (BR1M) rates has again been increased by between RM50 to RM300, will we see yet another fuel price hike soon? Tell us what you think of this in the comments below.