24-Sept-2008, by NST NEWSDESK (updated: 5:01pm)
KUALA LUMPUR, WED
THE PRIME Minister Datuk Seri Abdullah Ahmad Badawi has announced that the Cabinet has agreed to a further reduction of 10 sen per litre for fuel effective midnight today. He said it is the lowest the Government could give.
On Aug 22, the pump price of petrol was reduced to RM2.55 from RM2.70 per litre (RON 97) and diesel to RM2.50 from RM2.58 per litre.
The government had announced on Aug 1 that pump prices would be adjusted according to world crude oil prices on the first day of each month, starting Sept 1.
A minimum subsidy of 30 sen a litre and a ceiling price of RM2.70 a litre for petrol had been fixed until at least the end of the year.
The government had cut crippling fuel subsidies on June 5, resulting in the petrol price rising from RM1.92 to RM2.70 per litre.
Meanwhile, Benama quoted economist Datuk Zainal Aznam Yusoff as saying that the government may lower the price of fuel by as much as 15 sen.
Zainal, who is also a member of the Economic Council of Malaysia, said the government was likely to announce the new price after the Cabinet meeting today.