Minister predicts drop in petrol, diesel prices next year
The prices of RON 97 and RON 95 petrol and diesel would likely be cut next year, Deputy Finance Minister Datuk Ahmad Maslan said today.
Retail prices for the two types of petrol were reduced by four sen and nine sen a litre respectively on December 1. Diesel prices, however, went up three sen to to RM2.23.
It was also when Putrajaya introduced a managed float system for RON95, similar to the one used for RON97.
Despite the drop in global oil prices, Putrajaya received criticism for not being transparent about the way it fixed retail prices.
Opposition politicians said they were higher that what they should be under the float.
Ahmad said Putrajaya would also announce a cut in diesel prices.
"Further announcement will be made on December 31 this year at 8pm," Ahmad said. He was speaking to reporters today, after the launch of Malaysia Debt Ventures Bhd new corporate strategy.
But, he did not disclose the reduction quantum for fuel prices.
The price revisions come under a managed-float system, which determines fuel prices on a monthly basis, according to crude oil prices. The managed-float system means the government no longer subsidises fuel.
Bloomberg data showed crude oil prices had fallen to some US$57 (RM198) a barrel today, amid oversupply concerns. This compares to a six-month intraday high of about US$107 on June 20, 2014.
Today, Ahmad said basic goods suppliers should reduce prices, amid cheaper fuel.
He urged several companies that supply 80% of basic goods to Malaysians, to lower their prices.
"They should lower prices of goods to benefit the people," Ahmad said. He said these companies were beneficiaries of cheaper petrol. – The Edge Financial Daily, December 18, 2014.
