KUALA LUMPUR (Dec 24): Finance Minister Lim Guan Eng today said retail prices of petroleum products in Malaysia will be set on a weekly basis from Jan 1, 2019 instead of monthly, as the government works towards lowering fuel prices.

In a statement, Lim said the government will work towards lowering retail prices of petroleum products, including RON95, starting Jan 1, 2019, because 
prices are currently set on a monthly basis.

"Subsidy for petrol products from May to November 2018 amounted to RM5.82 bilion," Lim said. 

He said setting retail prices of petroleum products on a weekly basis will enable consumers to enjoy rapid price changes, in line with petroleum price changes in world markets.

As such, retail prices of petroleum products in Malaysia are expected to drop from Jan 1, 2019, according to him. He said if the downtrend in world crude oil prices continues, retail fuel prices in the country will be lowered every week.

In the statement, Lim also explained the retail fuel price-setting mechanism, if crude oil prices rise.
 
"In such situation, the rise in retail fuel prices will be controlled and capped at RM2.20 a litre for RON95 dan RM2.18 for diesel. These prices will be maintained until the implementation of the RON95 petrol subsidy in a targeted manner in 2019," he said.

Today, he said the government will implement the targeted RON95 petrol subsidy for the deserving segment of consumers.

"For those outside the segment, retail prices of RON95 petrol will be floated in a controlled manner to reduce the government's subsidy burden and in line with the government's intention of giving the subsidy to benefit the targeted segment, especially those with low income," Lim said.