August: No Price Control on Petrol!

There will be no price control on petrol and diesel with the implementation of the subsidy mechanism in August this year, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said today.

He said the government was considering two fuel subsidy mechanisms comprising “cash income” and setting quotas.

The fuel prices in Malaysia would then reflect the global market prices, Shahrir said.

"It will depend on global market prices,” he told reporters after opening the First Malaysian Construction Summit 2008 here.

"We are moving towards inflation where the whole subsidy system needs to be revamped, to be done by August. But what is going to happen tomorrow will be a step towards that. We will do it incrementally because a full subsidy system cannot be done immediately now,” Shahrir said.

"Tomorrow has to be seen and looked as part of the total revamp,” he said.
"You can’t have a price increase without some form of subsidy being given to Malaysians. We are thinking to raise the pump price in the market. At the same time, we have to stop the smuggling and abuse that have been happening,” he added.

Shahrir said the government expects to increase its subsidy of the commodity up to between RM55 billion and RM56 billion this year, depending on the global oil price.

"The oil price keeps going up, so the subsidy payroll also keeps going up,” he said. — BERNAMA