Malaysia cuts fuel price by 6.1 percent

Malaysia Wednesday cut petrol prices by 6.1 percent amid a fall in world oil prices.
Prime Minister Abdullah Ahmad Badawi said the price of petrol would be cut by 15 sen to 2.30 ringgit (0.92 dollars) a litre while diesel prices would fall by 20 sen to 2.20 ringgit effective Wednesday.

It is the third time the government has cut fuel prices since a 41 percent hike in June on the back of soaring crude costs -- a 3.9 percent cut was introduced last month.

The massive rise in June sparked angry street protests and calls for Abdullah to quit. The prime minister later said prices would be reviewed periodically based on the cost of oil.

"Because oil prices have fallen sharply in recent times, the government has decided to cut fuel prices to allow the masses to benefit (from) lower prices," Abdullah said in a statement
June's hike saw inflation skyrocket, with the August price index reaching a 26-year high of 8.5 percent, driven by the escalating cost of food and fuel.

Opposition leader Anwar Ibrahim, who is mounting an aggressive challenge against Abdullah's leadership, has promised to cut fuel prices substantially if he wrests power from the ruling coalition.


Agence France-Presse - 10/14/2008 11:12 AM GMT