MoF: Expect Lower Fuel Prices With Weekly Float From January 2019Auto News
The Ministry of Finance will implement a weekly float system for all retail fuel prices, starting from January 1st 2019. Currently, only the premium grade RON 97 fuel is subjected to a float system.
In a media statement released by the Ministry, the fuel prices in the country will also be lower next month due to the falling prices of crude oil.
Lim Guan Eng, Finance Minister of Malaysia, said, “The fall of fuel prices in December will only result in a reduction in fuel prices in January 2019. However, should there be a rise in global crude oil prices, the government will cap fuel prices at RM2.20 per litre for RON95 petrol and RM2.18 per litre for diesel.”
He said that the price cap is only temporary until the government has put the targeted fuel subsidy mechanism in place.
The government will implement the proposed weekly fuel pricing based on the Automatic Pricing Mechanism (APM) that takes into account of the average cost of the refined fuel with reference to Mean of Platts Singapore (MOPS) and the current month’s foreign currency exchange rates.