KUALA LUMPUR (Nov 20): The government said it will identify measures to reduce the impact of rising oil prices if retail prices of RON95 petrol and diesel breaches RM2.50 per litre for three consecutive months.

In a statement today, the finance ministry said it has taken note of rising retail fuel prices amid the uptrend in global crude oil prices, which have breached US$60 per barrel.

"Currently, the government has implemented subsidy rationalisation on petroleum products in tandem with the trends of worldwide crude oil price movements," said the ministry.

"This step has successfully reduced leakage and ensured that the subsidy is directed [at the right recipients]," it added.

The finance ministry also assured that any measure adopted will ensure that the public is not burdened by the oil price hike, and that inflation will remain under control in the medium and long term.

Malaysia currently fixes retail fuel prices on a weekly basis, calculated using an automatic pricing mechanism. The government still provides subsidy for the public transportation sector and fishermen, as well as for liquefied petroleum gas.

RON95 petrol price in Malaysia is currently retailing at RM2.38 per litre, up 7 sen from last week. Diesel price rose by 5 sen to RM2.25 per litre.

Brent crude oil price futures have been rising steadily from a low of US$45 per barrel since mid-June to above US$60 per barrel since end-October. It is currently priced at US$62.31.