Update: (5 June 2008) More info regarding the price hike can be found here. Also, the ban on the sale of petrol to foreign cars has been lifted.

Breaking News! The Prime Minister of Malaysia, Datuk Seri Abdullah Ahmad Badawi, today announced that the new price of petrol will be RM2.70 per litre effective midnight tonight. The hike of 78 sen per litre (about 40% increase) is part of the government’s new subsidy plan and is still below the anticipated RM4 per litre price tag initially projected.

Diesel fuel will go up by RM1.00 to sell at RM2.58 per litre. Datuk Seri Abdullah Ahmad Badawi also announced a new tariff structure for electricity supply in Peninsula Malaysia beginning 1 July 2008. The government also announced that annual cash rebates of up to RM625 will be given starting 1 July 2008 for private vehicle owners in view of the new petrol rates. The rebates will come in the form of Money Orders when owners renew their vehicles’ road taxes. There will also be road tax reductions for vehicles above 2000cc and motorcycles above 250cc.

On my way home just now, as expected, all the petrol stations were jam-packed with people trying to fill up their vehicles for the last time before the new prices come into effect. Sources: TheStar Online & The New Straits Times Online.