The government says there are no immediate plans to review fuel prices despite the price of crude oil dropping to its lowest level in four years. It will however continue to monitor global oil prices and make a decision to review the pricing if needed, according to a news report.

“We have no plans to review the fuel price, but we will work with the Finance Ministry and Bank Negara Malaysia to monitor the price of crude oil. We will only make a decision if there is a need,” Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek told the New Straits Times.

The price of oil reached its lowest level in four years on October 15, at US$83.37 a barrel (RM272.93), brought about by a glut in supply and weak market demand.

Petroleum Dealers Association of Malaysia (PDAM) president Datuk Hashim Othman added that before reviewing the price, the government needs to forecast many things, including the (state of the) country’s and the world’s economy in the next few months. The government will also have to look at the average price for a month, he added.

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The country’s petrol and diesel prices at petrol stations are regulated by the government with the Automatic Pricing Mechanism (APM), Hashim said, adding that through the system, the retail price in Malaysia would not be affected by the fluctuations in the cost of fuel production.

“According to the APM, the difference between the retail price and the actual price will be borne by subsidies and sales tax exemptions. APM standardises the price of fuel at pump stations, fixes the margins of oil companies and dealers, ensures distribution channels are secure, and minimises disruptions of petrol and diesel supply,” he said.

On October 2, the price of RON 95 and diesel at the pump was increased by 20 sen to RM2.30 per litre and RM2.20 per litre respectively. Pricing for unregulated RON 97 remains at RM2.75 per litre after a previous reduction earlier in September this year, with no change in pricing for LPG.

Meanwhile, the government has announced that a mechanism or plan for the rationalisation of subsidies for RON 95, diesel and LPG is set to be unveiled in the next few weeks.