PM: Petrol price to be fixed on first day of each month from Sept1
PUTRAJAYA (Aug 1, 2008): From Sept 1, the pump prices of petrol will be fixed on the first day of each month. But it will not go beyond RM2.70 a litre this year.
Prime Minister Datuk Seri Abdullah Ahmad Badawi, who announced this today, said the retail price of petrol will be streamlined and based on the average monthly market price with the government maintaining the subsidy rate at 30 sen per litre and with the RM2.70 ceiling maintained for this year.
He said in a statement the government was making the revision after studying in detail the price movement of crude oil of late, which was on a downward trend and dropped to US$122 a barrel on Tuesday.
In June, the average crude oil price was US$132 a barrel and the government subsidised petrol by 64 sen a litre.
According to the statement, the world crude oil price was US$125 a barrel when the government restructured its oil subsidy scheme with petrol getting a 30 sen a litre subsidy. On June 8, the price shot up to US$139 a barrel (USD1=RM3.24).
Abdullah said that although petrol price should have been further increased by another 40 sen a litre, the government decided to maintain its price and on June 11, assured the people of no further petrol increases this year.
With this mechanism in place, a further drop in world crude prices will trigger lower pump prices.
Source : sun2surf