M'sia may cut fuel prices in Sept
Fuel price cut: A motorist fills up his car at a petrol station in Kuala Lumpur. Malaysian Prime Minister Abdullah Ahmad Badawi said the Malaysian government was set to announce a cut in fuel prices. Picture: AFP
Saturday, August 2, 2008
EFFECTIVE Sept 1, the retail price of petrol in Malaysia will be streamlined and based on the average monthly market price of world crude oil with the government maintaining the subsidy rate at 30 sen per litre, Datuk Seri Abdullah Ahmad Badawi said yesterday.
The Prime Minister said following the move, the retail price of petrol will be fixed on the first day of each month.
"The government also gives an assurance that the retail price of petrol will not exceed RM2.70 ($1.135) a litre this year."
He said the government was making the revision after studying in detail the price movement of crude oil of late, which was on a downward trend and dropped to US$122 a barrel on Tuesday.
In June, the average crude oil price was US$132 a barrel and the government subsidised petrol by 64 sen a litre.
"If possible, I want to reduce the fuel price right now. Be patient, the government will announce it later. The government is studying several matters before making the announcement," he said when asked when the price would come down.
He said the government's plan to reduce the fuel price was discussed at the Cabinet meeting on Wednesday and several ministers had spoken on the matter.
Asked by reporters for the reduction formula, he told them to be patient.
The petrol price was raised by 78 sen to RM2.70 per litre and the diesel price by RM1 to RM2.58 per litre on June 4.
At that time the world crude oil price was US$140 (RM457.80) a barrel. The current price is around US$122 a barrel.
Meanwhile, at a separate press conference, Deputy Prime Minister Datuk Seri Najib said it was the government's desire to lower fuel prices as global crude oil prices continued to fall.
He said if oil prices continued to trend downwards, they would be reflected in domestic fuel prices.
"Certainly, there is a desire for us to reflect the current market situation," he told reporters at the launch of Amanah Raya Bhd's scholarship for Islamic studies at Egypt's Al-Azhar University here yesterday.
He said the Cabinet discussed the matter on weekly basis.Bernama
The Prime Minister said following the move, the retail price of petrol will be fixed on the first day of each month.
"The government also gives an assurance that the retail price of petrol will not exceed RM2.70 ($1.135) a litre this year."
He said the government was making the revision after studying in detail the price movement of crude oil of late, which was on a downward trend and dropped to US$122 a barrel on Tuesday.
In June, the average crude oil price was US$132 a barrel and the government subsidised petrol by 64 sen a litre.
"If possible, I want to reduce the fuel price right now. Be patient, the government will announce it later. The government is studying several matters before making the announcement," he said when asked when the price would come down.
He said the government's plan to reduce the fuel price was discussed at the Cabinet meeting on Wednesday and several ministers had spoken on the matter.
Asked by reporters for the reduction formula, he told them to be patient.
The petrol price was raised by 78 sen to RM2.70 per litre and the diesel price by RM1 to RM2.58 per litre on June 4.
At that time the world crude oil price was US$140 (RM457.80) a barrel. The current price is around US$122 a barrel.
Meanwhile, at a separate press conference, Deputy Prime Minister Datuk Seri Najib said it was the government's desire to lower fuel prices as global crude oil prices continued to fall.
He said if oil prices continued to trend downwards, they would be reflected in domestic fuel prices.
"Certainly, there is a desire for us to reflect the current market situation," he told reporters at the launch of Amanah Raya Bhd's scholarship for Islamic studies at Egypt's Al-Azhar University here yesterday.
He said the Cabinet discussed the matter on weekly basis.Bernama
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