The method of determining weekly fuel retail prices is based on several formulas and takes into account global market prices as well as the Ringgit’s position, and there is no element of fraud in it, according to the domestic trade, cooperatives and consumerism ministry (KPDNKK).

Its minister, Datuk Seri Hamzah Zainudin, said the ministry has never hidden any information about the determination of weekly petrol and diesel retail prices because the same method was used at an international level, Bernama reports.

“The weekly oil price changes are based on global market prices. If global oil prices drop today, we don’t necessarily lower the prices tomorrow because the calculation method in determining the retail prices in our country is based on the average (world) prices for a week,” he explained.

“In addition, we also need to look at our currency at the time the deal (oil purchase) was made. If (the currency is low), then we have to buy at a higher price and vice-versa,” he added.

“Believe me, there is no fraud in determining the petrol and diesel prices. In fact, we don’t hide the real information as the (retail) prices were set for the interest of the people. The government will ensure that whatever programme being implemented will benefit the people,” he said.

Hamzah made these comments following a news piece, which reported that the continued increase of petrol price thrice this month – despite the downtrend in global crude oil prices – had raised eyebrows among the public.