Malaysia has raised the retail price of diesel and RON95 petrol by RM0.20 a litre (S$0.08) each. But what has that got to do with Singaporeans since they are only entitled to pump RON97 petrol and above?

The price hike, effective from 3^rd September 2013, is in line with the government's initiative to cut costly subsidies.

"Currently, the government bears an RM0.83 (S$0.32) subsidy for a litre of RON95 petrol and RM1.00 (S$0.38) for a litre of diesel. The RM0.20 subsidy reduction means the government still provides a RM0.63 (S$0.24) subsidy for a litre of RON95 and RM0.80 (S$0.31) for a litre of diesel," said Prime Minister Najib Razak, who is also the Finance Minister.

"The subsidy cut will save the government an estimated RM1.1 billion (S$422,682,700) this year and another RM3.3 billion (S$1,268,048,100) in 2014," he added.

RON95 petrol is now priced at RM2.10 (S$0.81) per litre and diesel at RM2.00 (S$0.77) after the hike, up from RM1.90 (S$0.73) and RM1.80 (S$0.69) respectively.

Well, for Singaporeans who travel frequently up North to fill up, here's the not-so-good news. The price per litre of RON97 petrol has also been increased by RM0.15 starting 4^th September 2013, bringing its price to RM2.85 (S$1.10), up from RM2.70 (S$1.04) previously.

On the other hand, the good news is that the increase in Malaysian fuel prices is still incomparable to the skyrocketing prices at local pumps - diesel retailing at $1.71 per litre, RON92 at $2.20 per litre, RON95 at $2.24 per litre and RON98 at $2.38 per litre.