Petrol price may drop if crude oil below US$125

Anwar Ibrahim has been using fuel prices as ammunition for his government reform campaign (see debate between Anwar and Ahmad Shabery), but this latest move by the ruling government may just force Anwar to look for something else.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad told Bloomberg that the government may consider dropping fuel prices of petrol and diesel in Malaysia if the cost of crude oil drops below US$125 and stabilizes and is sustained for at least 3 weeks. The government may also continue subsidizing fuel for the next 10 years instead of cutting off fuel subsidies much earlier as planned.

However the report is just full of “may” and “maybes” and “why nots”… nothing is concrete, so no one should get their hopes high. Even if prices drop, it may go up again.


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