Petrol prices likely to come down by another 15 sen

Malaysians can look forward to another 15 sen cut in fuel price by the end of the month, bringing pump prices to a two-year low of RM1.85 per litre.

The lowest price the people paid for fuel prior to the recent escalating global oil prices was RM1.92 per litre in March 2006 before it was increased to RM2.70 per litre on June 5, this year.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said further reduction was “not impossible” judging from the decline in global prices for the commodity.

“Malaysians can expect good news and pay less for petrol. As it is, consumers have been paying unsubsidised petrol the past few days.

“But the Government will have to continue to subsidise diesel and gas so the money is channelled for these purposes,” he said after attending the ministry’s family day yesterday.

On Nov 18, the Government slashed prices of petrol and diesel by 15sen.

The current pump price for RON97 is RM2 per litre while RON92 is sold at RM1.90 per litre. Diesel is sold at RM1.90 per litre.

Shahrir said while Malaysians were now paying slightly more for fuel than the market price, the additional money paid by consumers went back to the Government’s coffers and did not increase revenue collected by petrol companies or stations.

“Even the Government is not making money from the difference. This is because we have paid RM15bil to date this year in subsidy and there are other things that continue to need subsidy.”

He said the decline in global oil prices reflected weakening in demand, which could also be dangerous as this showed that people were not spending and that economies were weak.

The minister said he had emphasised to traders time and again to bring down the price of goods as reasonably priced goods would create higher demand.