Fuel hikes on cards, key players meeting today

By Yow Hong Chieh, The Malaysian Insider

The government will likely call for another round of across-the-board fuel price hikes later today as part of its subsidy rationalisation efforts, industry sources say.

Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob and Pemandu CEO Datuk Seri Idris Jala have called for a “very important meeting” at 3.00pm in Putrajaya to discuss the second wave of subsidy rationalisation.

“The government’s intention to allow market mechanisms to determine prices of essential goods and output to ensure better allocation of national resources, reduce wastage and increase the efficiency of the economy is expected to continue into 2011 as it remains committed towards subsidy rationalisation,” the media invite read.

Fuel subsidy was last cut in July 16, when prices went up by 5 sen per litre for petrol and diesel, and 10 sen per kg for liquefied petroleum gas (LPG).

Today’s possible fuel price hike move will come only two days after the price of RON97 petrol was increased by 15 sen per litre to RM2.30. It was the second RON97 price hike announced in a month following a 5 sen increase on November 1.

RON97 is subject to a managed float to reflect the price of petrol in the global market.

Yesterday, Bernama reported that the government was considering standardising the price of diesel, which is sold at different rates according to use.