Based on the average monthly fuel price so far, Datuk Shahrir Samad has indicated a probable reduction in petrol prices of up to a maximum of 12 sen by the end of October 2008. If the maximum of 12 sen reduction is achieved, this would mean RON97 fuel could cost RM2.33 per litre, down from the current RM2.45 per litre. This maximum drop is possible if crude oil prices average out below US$104 per barrel.
Our petrol price is dependent on two factors – the price of crude oil itself and the exchange rate between USD and MYR. Datuk Shahrir mentioned that at current exchange rate prices, oil per barrel has to be US$72 for a RM1.92 petrol price. If we want to enjoy a RM1.92 price with oil costing more than US$72 per barrel, our ringgit instead needs to appreciate against the US dollar.