Malaysian to Reduce Petrol Price

KUALA LUMPUR, Nov 15 (Reuters) - Malaysia will announce a fuel price cut on Sunday or Monday following a steep drop in the price of crude oil, a government minister said on Saturday.

“You can expect an adjustment in the fuel price because the average crude oil price for the past two weeks has been below $70,” Domestic Trade Minister Shahrir Samad told Reuters by telephone.

Prices were last cut on Oct. 15 by 15 sen to 2.30 ringgit ($0.64) a litre for RON97 unleaded petrol, while the price of diesel was cut by 20 sen to 2.20 ringgit.
He said the reduction would not be more than the 15-sen cut for petrol seen last month. It would be the fourth reduction since Malaysia slashed subsidies in June.

Malaysia is a net oil exporter and the government gains about $75 million a year in revenue for every $1 rise in the price of crude.

The government subsidises domestic pump prices to keep them affordable but record energy prices had put a strain on state finances.