We have good news and a small piece of bad news. Low-sulphur fuel will be available in April onwards without any price increases. The new low-sulphur fuel would have 0.05 percent sulphur content, complying with Euro II fuel standards, down from 0.15 percent in petrol and 0.3 percent in diesel.
“My view is that oil companies should be able to absorb any extra cost in coming out with lower sulphur fuel. They are multinationals which are already meeting certain international standards for the European Union and other advanced countries, so now that we want to introduce this fuel here, they should be ready to provide it,” said Department of Environment director-general Datuk Rosnani Ibrahim.
Rosnani further adds that Euro IV will be implemented in four years time in 2011, but that will most likely come with a price adjustment. Of course, who knows how many times fuel prices would have been raised in four years time, what’s another price hike?
So we’re not looking at a fuel price hike come 1st April 2007, but we won’t be seeing any reduction in prices either. Prime Minister Datuk Seri Abdullah Ahmad Badawi says the government cannot reduce prices even though oil barrel prices have gone down because the global crude oil price is still unstable.