Malaysia to hold prices steady

The Malaysian government will maintain the retail prices of gasoline and diesel fuel for now although world crude oil prices have declined from their peak. Prime Minister Datuk Seri Abdullah Ahmad Badawi said this was because world crude old prices have not really stabilized and remain unpredictable. “In terms of subsidies shouldered by the government for petroleum products, the amount remained high at RM7.3 billion (US$2.11 billion) in 2006, not a big difference from the RM8.15 billion (US$2.36 billion) in 2005 although crude oil prices dropped in the last quarter of 2006. To enable the prices to be fixed and controlled, the government gives tax exemptions and pays subsidies, whereby if the cost exceeds the fixed prices, the government bears the difference,” he said. (March 26, 2007)