The Malaysian Insight

THE Pakatan Harapan government’s weekly float of petrol prices is not a copy of the system introduced by Barisan Nasional, Finance Minister Lim Guan Eng said.

“People say we are following the old way. No. In the past, there was no price limit set. 

“What we are introducing has not been done before. This is a PH government innovation praised by many. When the global fuel prices go down, the people will pay less and benefit weekly.

“But when global prices increase, the people only pay up to RM2.20 a litre. The rest will be subsidised by the government,” he said in Penang today after launching a lift upgrading project at the Bukit Gelugor Customs quarters.

The government recently announced that it would implement a weekly fuel price float system so that retail prices for petrol would reflect currently depressed global oil market conditions.

But the announcement is being opposed by the Petroleum Dealers Association of Malaysia (PDAM), which has called for a delay of the new pricing mechanism to later this week.

Last Friday, PDAM president Khairul Annuar Abdul Aziz said dealers would suffer big losses when there were changes in the price mechanism.

 Following the association’s objection, Lim yesterday said the new retail petrol prices would be announced within this first week of the year.

“We will announce the prices after the first cabinet meeting tomorrow. It may be sooner or later, but definitely within this first week of the year,” he told reporters today.

“The prime minister (Dr Mahathir Mohamad) is meeting the association, which is against the float system. The government wants to take in everyone’s views, but the system will go ahead.

“We will implement it until we introduce the free petrol card,” he said, referring to the targeted petrol subsidy that will benefit the B40 group and others who need it.

Lim said in due time, Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail will reveal more details on the free petrol card that would be introduced in another six months.

 “We have to first go through an open tender to appoint a company to handle the card. The tender process is still ongoing. Then, we will make the necessary evaluation,” he said. – January 1, 2019.