The government will continue to use a managed float system to determine fuel prices in Malaysia, with reference to the world price of crude oil. This is according to second finance minister, Datuk Seri Johari Abdul Ghani, in a report by Bernama.

“When it comes to a stage where we have to make a discussion, we will discuss it. As far as today, it is still far, as we have to remember that it was US$140 per barrel before,” he said.

Johari was referring to the world price of crude oil in 2008, which reached US$140 per barrel, and RON 97 was priced at RM2.70 per litre. Recently, RON 95 was set at RM2.31 per litre, the highest before weekly price updates were introduced.

He added the constantly changing price of crude oil was beyond the government’s control, and it could only monitor the situation and distribute the 1Malaysia People’s Aid (BR1M) to assist those in the lower income group.

“Today’s float scheme will be maintained as we cannot change it, as (world crude oil price) is beyond the government’s control. It’s still far from what we’d seen, and it’s still manageable at around RM2.31 per litre.”

“Malaysia now has a population of 31 million, and is the 25th largest oil producer, not the number one or two. If we were to look at other oil producers, some produce up to 11 million barrels a day. We cannot control the world’s crude oil production. What we can do is make sure that monitoring is done so as to avoid causing hardship to the people,” he explained.