M'sia subsidised petrol price of S$0.60 per litre among cheapest in the world, says minister

Malaysia's second finance minister, Amir Hamzah Azizan, said the country's subsidised fuel prices rank among the lowest in the world.

Speaking at the press conference in Penang, Amir Hamzah said Malaysian fuel would still be among the world's cheapest even if the prices were raised to market levels, Malay Mail reported on Sep. 22.

Not just the region, but the world, he added.

Conversely, even if market fuel prices were to drop, the price would remain the same at RM 1.99 (S$0.60) per litre.

He claimed that the scheme prevents "leakages" and stops the fuel from being sold to foreigners, and results in savings of up to RM4 billion (S$1.22 billion) a year, which could be invested in other government programmes.

Lower by a few cents per litre

Earlier this year, prime minister Anwar Ibrahim announced the subsidised price of fuel.

The price of subsidised RON95 fuel will be reduced to RM1.99 (S$0.60) per litre from RM2.05 (S$0.62) per litre, effective Sep. 30, Anwar said at a regular briefing at the Prime Minister's Department.

The Malaysia government is currently considering the "rationalisation" of fuel subsidies and could announce a two-tiered pricing system for subsidised fuel, with certain higher-income groups and foreigners paying the full price.

Non-citizens are expected to pay RM2.60 at the pump (S$0.79),

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