Thursday, December 25, 2008
Fuel price plan on Monday - either set floor level or float
Tuesday November 25, 2008
Fuel price plan on Monday - either set floor level or float
By IZATUN SHARI
KUALA LUMPUR: The Government will decide next Monday whether to implement a floor price plan for a litre of petrol and diesel or stick to the petrol and diesel price flotation mechanism based on market rates.
Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said the Economic Council would discuss the advantages and disadvantages.
“On Dec 1, we will discuss whether we want to use the floor price mechanism or continue with the managed floatation mechanism.
“If we were to set a floor price for petrol, we have to decide the level,” he said after opening the fifth heads of Asean Intellectual Property Offices Conference here yesterday.
“We will discuss what is a reasonable level so that there will be the opportunity for the Government to make some revenue (from the sale of petrol) to be channelled to the consolidated fund,” he said when asked to elaborate on the proposal for a floor price plan.
The Government now gets some revenue due to the difference in the ex-refinery price and the price oil companies sell petrol to station operators.
Shahrir said Fomca had proposed that the petrol floor price be set at RM3 per litre to encourage the prudent use of petrol, promote the use of public transport and push for development in alternative energy.
Asked about the progress on the proposed Fair Trade Practice Act, Shahrir said it was expected to be tabled in Parliament in June.
