The petrol and diesel prices will drop by between 0.08 ringgit (0.02 U.S. dollars) and 0.22 ringgit (0.07 U.S. dollars) respectively from Saturday, Malaysian Prime Minister Abdullah Ahmad Badawi announced in Kuala Lumpur on Friday.
The Cabinet had decided that the price of RON97 petrol be reduced by 0.15 ringgit (0.04 U.S. dollars) to 2.55 ringgit (0.76 U.S. dollars) a liter from 2.70 ringgit (0.81 U.S. dollars), while RON92 would cost 0.22 ringgit (0.07 U.S. dollars) less at 2.40 ringgit (0.72 U.S. dollars) a liter from 2.62 ringgit (0.78 U.S. dollars) a liter, Badawi said in a statement.
The retail price of diesel would drop by 0.08 ringgit (0.02 U.S. dollars) to 2.50 ringgit (0.75 U.S. dollars) a liter, he said in a statement.
The petrol price was determined by taking into account the actual price from Aug. 1 to 21 and the 0.3 ringgit (0.09 U.S. dollars) per liter subsidy borne by the government while the subsidy for diesel, based on the new price, was 0.5 ringgit (0.15 U.S. dollars) a liter.
"The cabinet ... decided to bring forward the enforcement date for adjustment of the new petrol price," he said.
The decision was made after taking into account the fall in the world fuel price in recent weeks and the steep rise in the inflation rate last month, Badawi said.
Malaysia's Consumer Price Index (CPI) for last month rose by 8. 5 percent compared with July last year.
"It is the government's hope that the reduction in the petrol and diesel prices will help ease the burden of consumers and reduce the inflationary pressure, especially on the low- and middle-income earners. The decision is also based on the current economic development," the prime minister said.
On Aug. 1, the Malaysian government announced that the petrol retail price, till the end of the year, would be adjusted on the first of every month, with the subsidy maintained at 0.3 ringgit ( 0.09 U.S. dollars) per liter.
However, the prime minister said the adjustment formula would only be implemented if the retail price of petrol was less than 2. 70 ringgit (0.81 U.S. dollars) per liter. Otherwise the price would be capped at that.
On June 5, the government raised the petrol price by 0.78 ringgit (0.23 U.S. dollars), or 41 percent, from 1.92 ringgit (0. 57 U.S. dollars) to 2.70 ringgit (0.81 U.S. dollars) a liter and diesel by 1 ringgit (0.30 U.S. dollars), or 63 percent, from 1.58 ringgit (0.47 U.S. dollars) to 2.58 ringgit (0.77 U.S. dollars) a liter.
At that time the world oil price was 125 U.S. dollars a barrel and it continued to rise to hover at 140 U.S. dollars a barrel at one time but has been on a downward trend since early this month.
The price was around 115 U.S. dollars a barrel last week and 121 U.S. dollars a barrel on Thursday.
|
About Us 
