Dateline 2014-11-25, Malaysia Reserve:
The government will intervene and re-introduce fuel subsidy if world oil prices rise again, says Deputy Finance Minister Datuk Chua Tee Yong.
He said the government has not abandoned its three-tiered fuel subsidy mechanism and that the targeted subsidy system for fuel is still being finalised by the Ministry of Domestic Trade, Cooperatives and Consumerism.
Chua’s statement came on the heels of the government’s announcement last Friday that the fuel subsidy for non-premium RON95 petrol and diesel would be abolished on Dec 1 and the fuel would be priced based on the monthly average world price of crude oil on a floating mechanism.
The move coincided with the falling global crude oil prices, which is expected to continue for some time.
Chua said yesterday that the government will remove the floating fuel price for RON97 and imposed the three-tiered subsidy mechanism if the global crude price hits the government’s target price.