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The government has confirmed that it will not be revising fuel prices on a weekly basis, maintaining the current method of monthly revisions instead. As reported by Bernama, deputy finance minister Datuk Johari Abdul Ghani said that now is not the time for such revisions.

“We cannot implement something which the public does not agree to because this matter was raised by some association or petrol station operators,” said Johari. His comments were a response to his own admissions in December 2015 that the Malaysian Petrol Dealers Association was keen to have the current system reworked.

The association claimed back then that monthly revisions of local fuel prices caused high losses with fluctuating crude oil prices. Then, Johari said that if the matter was not managed properly, more than 3,200 petrol dealers would be open to losses of up to 70%.

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With fluctuating fuel prices each month, the current system allows oil companies to adjust supply distribution to their benefit (based on forecasts of oil prices), which may compromise petrol dealers.

“A lot of oil companies now use this opportunity by sending the petrol dealers oil supplies in large volume at the end of each month if they expect the price to fall the following month,” he said today.

Johari’s most recent comments to bin the weekly revisions idea echo Prime Minister Datuk Seri Najib Tun Razak’s sentiments. The PM said that global crude oil prices are expected to stabilise at around the USD$30 to USD$40 per barrel (RM126 to RM168) mark, and that no further recalibration of Budget 2016 was needed.