PETALING JAYA: Fuel is 15 sen cheaper from today after the Government announced its fourth reduction since August.
Prime Minister Datuk Seri Abdullah Ahmad Badawi said in a statement yesterday that the Government had decided to expedite the reduction to allow the public to enjoy the benefits.
The new price for RON97 is RM2.15 a litre (from RM2.30). Both RON92 and diesel are now RM2.05 a litre from RM2.20 previously.
Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said that if the world crude oil price continued to drop at the present rate, local pump prices would likely revert to the pre-June price of RM1.92 per litre.
Shahrir, who said the average world crude oil price for October was US$76.40 (RM267.40) per barrel, said the average for November might go below US$70.
“So (if this happens) the price of petrol at the retail level will probably go back to RM1.92 per litre,” he said.
As a cap has been placed on a price of RM1.92 per litre, he said if the world crude oil price goes down even lower than that, the Government could end its fuel subsidy and use the money for other purposes.
For this year up to September, the Government spent RM16.8bil on fuel subsidy and RM2.5bil on rebates for motorists and motorcyclists.
“That means there is a likelihood that we will spend RM19bil to RM20bil on fuel subsidy for the whole year,” Shahrir said.
Shahrir hoped petrol station owners would accept the price reduction and accept any losses as part of business.
He pointed out that the Government had always been fair to the station owners, including helping them reduce operating costs by reverting to self-service, cutting on number of staff, not forcing them to open for 24 hours as well as increasing their margin from 9.5 sen to 12 sen per litre in June.