Govt to take steps to reduce impact of rising oil prices

KUALA LUMPUR: The government will identify appropriate measures to reduce the impact of rising world crude oil prices if the retail prices of RON95 and diesel exceed RM2.50 per litre continuously for three months.

In a statement yesterday, the Ministry of Finance ( MOF) said the measures taken would ensure that the people were not burdened with the rise in world oil prices and the rate of inflation would be controlled in the medium and long term.

“The government has implemented subsidy rationalisation measures for petroleum products to follow the rise and fall in the world crude oil prices.

“This move has managed to reduce leakages and ensure targeted subsidies reach the public transport sector and fishermen, as well as cooking gas,” it said.

The Finance Ministry said the fixing of the retail prices for RON95 and diesel took into consideration the global oil prices and the foreign exchange rates.

“The weekly pricing mechanism is based on the average change in the cost of petroleum products the previous week will determine the price for the following week,” it said. — Bernama

The government has implemented subsidy rationalisation measures for petroleum products to follow the rise and fall in the world crude oil prices. Statement from Ministry of Finance