At last the government is aware of what is going on with oil prices globally!

Below is an excerpt regarding the government views of oil prices globally. Two weeks ago, I had reckoned it would be fair for the government to review fuel prices based on the fluctuating prices of oil, hinting that it would be practical to lower fuel price as well .

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PUTRAJAYA (2 August 2008): Petrol price will be reviewed monthly from Sept 1 based on the average global market price and subsidy will be fixed at RM0.30sen a litre, Prime Minister Datuk Seri Abdullah Ahmad Badawi said.

The Government assured Malaysians that petrol price would not exceed RM2.70 a litre for this year. This means that although the market price for gasoline increases and the Government may have to subsidise beyond RM0.30sen a litre, the petrol price will not be raised this year.

Abdullah, in a statement issued here yesterday, said the decision was made after the fall of oil prices to US$122 per barrel on Tuesday from US$139, the highest recorded in June.

On June 5, when crude oil price was at US$125 per barrel, the Government announced the restructuring of fuel subsidies. Petrol subsidy was fixed then at RM30sen a litre and the Government said it would review petrol price from time to time.

Crude oil prices went up quite drastically on June 8 to US$139 per barrel.

Abdullah said that even when the oil price rose to US$139 per barrel, the Government maintained the petrol price although there should have been an increase of RM0.40sen per litre as it had given an assurance that there would be no further increase for the year.

Generally in the month of June, the crude oil price was at US$132 a barrel and the Government subsidised RM0.64 a litre, he said.

Earlier, after meeting with Brunei Crown Prince Pengiran Muda Al-Muhtadee Billah Bolkiah at his office here yesterday, Abdullah confirmed that the Government would lower fuel price.

“I hope the trend of lowering fuel prices in the global market will continue so that our price at the petrol pumps will be reduced,” he told reporters.

On Wednesday, the Cabinet had mulled over the possibility of Malaysians paying less for fuel soon due to the global prices taking a tumble.

(from STAROnline, 2 August 2008)