Malaysians To Benefit From Managed Float System

KUALA LUMPUR, Nov 29 (Bernama) -- Implementation of the managed float system for fuel will benefit the public following predictions that world crude oil prices will experience a downward trend next year. Domestic Trade, Cooperatives and Consumerism Minister of Malaysia Hasan Malek said the Malaysian government has conducted a study on the system to ensure the people enjoy the drop in world crude oil prices. "The mechanism is proven through the managed float of RON97 petrol, whereby retail prices will drop when fuel prices in the market drops and vice versa. "The government predicts a steady downward trend throughout next year," he told Bernama. Last week the government announced that the retail price of RON95 petrol and diesel will follow the managed float system starting Dec 1, and the method will use an automated pricing mechanism formula adopted by the government since 1983 for the determination of the retail of fuel in the country. Hasan stressed that the government will continue to keep abreast on the cost of petroleum products and currency exchange rates. He said the price of RON95 and diesel will be reviewed monthly, whereby the average cost of petroleum products from the previous month will be used as reference in determining the price for the following month. --BERNAMA