Malaysia's
government Saturday reduced the retail price of petrol by 5.6 per cent to help
curb rising inflation.
The pump price of gasoline was fixed at 2.55 ringgit (0.77 dollars) per litre
down from 2.70 ringgit. Diesel prices have been reduced from 2.58 ringgit to
2.50 ringgit per litre.
Prime Minister Abdullah Ahmad Badawi made the announcement late Friday, saying
the move would help curb inflation, which rose to a decade-high of 8.5 per cent
in July.
"The government hopes that the reduction in gasoline and diesel prices
will help to ease consumers' burden as well as ease inflationary
pressure," Abdullah said in a statement.
With the reduction, the government is giving a public subsidy of 30 sen (0.3
ringgit or 0.09 dollars) per liter on gasoline and of 50 sen on diesel, he
said.
The announcement came as a surprise as Abdullah said recently that pump prices
would be reduced only at the end of the month, and only if global crude oil
prices continued to fall.
In June, the government raised petrol prices by a whopping 41 per cent and
diesel prices by 63 per cent, saying the move was aimed towards easing the
country's massive subsidy bill.
Despite the raise, fuel prices in Malaysia have remained among the lowest in
the region.
Saturday's lowered prices come ahead of a parliamentary by-election on Tuesday
in which Abdullah's ruling coalition faces opposition leader Anwar Ibrahim, who
is expected to win easily.
Anwar's three-party opposition alliance made major gains in the March 8 general
elections by winning 82 of Parliament's 222 seats and taking control of five
out of Malaysia's 13 states. Anwar has claimed the opposition is ready to take
over government by mid-September, dpa
reported.
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