Mechanism on fuel prices to be announced tomorrow (Jan 4)

  • Nation
  • Thursday, 03 Jan 2019

Inflation mainly driven by additional pressure from the switch to targeted fuel subsidies, continued spillover effects from the reintroduction of the Sales and Service Tax and low-base effects during the three-month zero-rated Goods and Services Tax period.

KUALA LUMPUR: The Cabinet has reached a decision on the mechanism on fuel prices and it will be announced on Friday (Jan 4).

Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail, who said this on Thursday (Jan 3), however, remained tight-lipped on the form of mechanism that was decided by the Cabinet.

"As mentioned by the Prime Minister (Tun Dr Mahathir Mohamad) and Finance Minister (Lim Guan Eng) that a decision on the price of RON95 and diesel will be decided by the Cabinet.

"The Cabinet met yesterday (Jan 2) to discuss the matter, and it reached a decision.

"It will be announced tomorrow (Jan 4)," said Saifuddin in a press conference at the launch of Tesco Malaysia's Chinese New Year "Ong Mali" campaign.

Saifuddin said the announcement will be done through the official government channel.

The Minister also assured that the decision by the Cabinet has taken into account the interests of all stakeholders.

The weekly float system was initially supposed to start from Jan 1 but has been put on hold.

Lim said a weekly float system would be used to determine RON95 fuel price from Jan 1 due to the falling prices of crude oil, which will allow consumers to enjoy lower prices.

However, on Monday (Dec 31), the government announced that the retail prices of fuel would remain unchanged for the first week of 2019.

RON97 is now priced at RM2.50 while RON95 is RM2.20 and diesel is RM2.18 per litre until new retail prices are set.

On Wednesday (Jan 2), petrol dealers met with Dr Mahathir to highlight their concerns over the weekly float system.

The petrol dealers also presented their proposal for consideration to ensure they would not suffer losses should the government continue with its plan.

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