The government says it is looking into appropriate measures to reduce the impact of rising global petroleum prices, and will introduce these should the price of RON 95 and diesel in the country exceed RM2.50 per liter consecutively for the next three months.

Via a statement, the ministry of finance (MoF) said the measures taken will ensure that the people are not burdened with the rise in world oil prices and the inflation rate in the mid-term and long term, but did not elaborate further, theSundaily reports.

“The government is concerned and understands the impact following the rise of global crude oil prices that are presently more than US$60 (RM250) per barrel,” it said.

“Currently, the government has implemented a rationalisation step towards subsidising petroleum products in line with the trend of rising or decreasing world crude oil prices. This measure has been successful in reducing leakage and ensuring targeted subsidies,” the ministry said.

Last week, the government said it will continue to use a managed float system to determine fuel prices in Malaysia, with reference to the world price of crude oil.

“The current mechanism in place is on a weekly basis where the average change in the cost of petroleum products the previous week will determine the price for the following week. If world crude oil prices rise then retail prices of petroleum products also rise, otherwise the retail price will decrease if world crude prices drop,” the MoF statement added.

The government stated it is still paying millions of ringgit for fuel subsidies every month, saying it is “still subsidising fuel for the public transport sector and fishermen as well as cooking gas (LPG).

For the current week of fuel pricing (November 16-22), RON 95 is priced at RM2.38 per litre (up seven sen from RM2.31 last week), while RON 97 is at RM2.66 per litre (up six sen from RM2.60) and Euro 2M diesel retails for RM2.25 per litre (up five sen from RM2.20).