Monday, November 17, 2008

Malaysia cuts fuel price by 7.0 percent

Malaysia on Monday cut petrol prices by 7 percent, bringing pump prices down to 2.00 ringgit (0.56 dollars) per litre as global crude prices continued to ease.

Deputy premier Najib Razak said the 15 sen cut would be effective Tuesday with diesel also reduced by 15 sen to 1.90 ringgit per litre.

"This reduction... follows the promise the government has made to reduce (fuel) prices if there is a drop in oil prices in the global market," he said in a statement.

"The government hopes that businesses will take steps to reduce the price of goods so that the public can get the full benefit of the price cuts," he added.

"We also hope that consumers will use petrol and diesel sparingly even though prices have dropped."

It is the fifth fuel price cut the government has announced since June's 41 percent hike on the back of soaring crude costs, which sparked angry street protests and calls for premier Abdullah Ahmad Badawi to resign.

The last cut, by 15 sen, was just over two weeks ago.

Abdullah had said prices would be reviewed periodically based on the cost of oil.

June's hike saw inflation soar, with the August price index reaching a 26-year high of 8.5 percent, also driven by the escalating cost of food and transportation.

In September, inflation eased to 8.2 percent as fuel prices dropped. -- Agence France-Presse - 11/17/2008 10:51 AM GMT

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