Govt seeking measures to stem tide of increase in petrol prices

PETALING JAYA: The government will be seeking appropriate measures to reduce the impact following the increase of petroleum prices globally should the price of RON95 and diesel in the country exceed RM2.50 per liter consecutively for the next three months.
In a statement by the Finance Ministry, today, without further elaborating, the ministry said the measures taken will ensure that the people are not burdened with the rise in world oil prices and the inflation rate in the mid-term and long term.
"The government is concerned and understands the impact following the rise of global crude oil prices that are presently more than US$60 (RM250) per barrel.
"Currently, the government has implemented a rationalisation step towards subsidising petroleum products in line with the trend of rising or decreasing world crude oil prices.
"This measure has been successful in reducing leakage and ensuring targeted subsidies," it said.
The ministry further stated that RON95 and diesel retail pricing is carried out by taking into account world market prices of crude oil and foreign exchange rates.
"The current mechanism in place is on a weekly basis where the average change in the cost of petroleum products the previous week will determine the price for the following week.
"If world crude oil prices rise then retail prices of petroleum products also rise, otherwise the retail price will decrease if world crude prices drop.
"However, the Government is still subsidising the public transport sector and fishermen, as well as cooking gas (LPG)," it added.