SEpT 3 – Higher pump prices

The Star Malaysia - Star2 - - BIZ -

In its first fuel hike in two years, the Gov­ern­ment an­nounced a 20-sen re­duc­tion in sub­sidy for diesel and RON95 petrol, bring­ing the con­sumer price of diesel to RM2 and RON95 petrol to RM2.10 per litre. The move would save the Gov­ern­ment RM3.3 bil in sub­si­dies for 2014 as it worked to lower the wor­ry­ingly high bud­get deficit and shrink­ing trade sur­plus. Econ­o­mists have said that the per­sis­tent deficit could make the coun­try vul­ner­a­ble in an event of a sharp eco­nomic down­turn as it then would not have the funds to hold up the weak econ­omy. Malaysia spends RM24.8bil a year on fuel sub­si­dies.

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