Abdullah says Malaysian govt set to announce fuel price cut
August 01, 2008
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Country:
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Korea, Democratic People's Republic of
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Prime Minister Abdullah Ahmad Badawi said Friday the Malaysian government was set to announce a cut in fuel prices, following a 41-percent hike in June that stirred protests.
The government hiked petrol prices to ease the burden of spiralling energy subsidies, but crude oil costs have fallen around 23 dollars from record highs above 147 dollars per barrel hit earlier in July.
"If possible, I want to reduce the fuel price right now. Be patient, the government will announce it later," Abdullah was quoted as saying by the Bernama news agency.
"The government is studying several matters before making the announcement."
Deputy Prime Minister Najib Razak said the government wanted to cut fuel prices.
"I think if the trend of oil prices continues downwards, it is only right that it is reflected in domestic prices. There is a desire for us to reflect the current market situation," he told reporters.
A senior finance ministry official told AFP Thursday that Malaysia may reduce fuel prices in the weeks ahead if global oil prices continue to fall.
The official said "if oil prices remain between 120 dollars a barrel and 125 dollars a barrel for two weeks," then Abdullah could announce a cut in fuel costs.
Oil was trading at around 123 dollars on Friday after being pushed lower on fears of easing energy demand. But prices are still much higher than in recent history, having traded at under 10 dollars in the late 1990s.
Abdullah's decision to hike fuel prices sparked angry street protests and triggered calls for the premier to stand down, compounding his woes after disastrous results in March elections.
Malaysia's annual inflation rate soared to a 26-year high of nearly eight percent in June due to the rise in fuel costs, echoing a surge in inflation across Asia that has stoked fears of slower regional economic growth.