Extra joy with fuel prices down
New weekly float system to determine monthly rates from Jan 1
Fuel prices in the country will be lower from next month with the re-introduction of the weekly float system that will be used to determine prices from Jan 1. The stakeholders want a meeting with the government as they claim the system would ultimately create losses for dealers should prices keep falling.
PETALING JAYA: A weekly float system will be used to determine fuel price for RON95 from Jan 1 onwards due to the falling prices of crude oil, says Finance Minister Lim Guan Eng.
Fuel prices in the country will also be lower next month due to this, he said.
With the current system, he said the Government sets fuel prices on a monthly basis, so lower prices would only be reflected the following month.
“The fall of fuel prices in December will only result in a reduction in fuel prices in January 2019,” he said in a statement yesterday.
He said that the new retail price for petrol, including RON95, will be seen on Jan 1.
“It will allow consumers to enjoy the fall in world oil prices faster,” he added.
A weekly float system allows Malaysians to benefit faster from reductions in the fuel prices, he added.
If the world crude oil prices rise, the Government will cap fuel prices to RM2.20 per litre for RON95 and RM2.18 per litre for diesel, he said, adding that the prices will be capped until the targeted subsidy was put into place in 2019.
“This is in line with Pakatan Harapan’s manifesto during the 14th General Election to enhance the economic well-being of the peo- ple by enabling them to benefit from the falling oil prices while helping the B40 group with targeted subsidy if oil prices rise,” he added.
He said the Government spent RM5.82bil in fuel subsidies between May and November.
Lim also refuted former Prime Minister Datuk Seri Najib Razak’s claim that the Government had imposed a 30 sen tax on every litre of RON95 since November.
He also disputed Najib’s claim that the Government had collected RM120mil per week from the sale of RON95.
Najib had earlier said that Budget 2019 was done when the crude oil price stood at US$72 a barrel and retail price of RON95 stood at RM2.20 per litre, but now that crude oil price was US$52 per barrel, the retail price of RON95 should be at RM1.90 per litre.
“The Pakatan Harapan Government has collected RM120mil tax from the weekly sale of RON95 to the people,” he claimed.
Former PKR vice-president Rafizi Ramli had also asked the Government to review fuel prices weekly rather than monthly.
Following Lim’s announcement, Rafizi said that a weekly float was “the best method”.
“Review it weekly so if prices go down, the people can enjoy (the savings) faster. And have subsidy so that if prices go up, the people are protected,” he said.