Fuel price float mechanism not ready: Malaysia

KUALA LUMPUR - The Domestic Trade, Co-oper­atives and Consumerism Ministry still needs time to prepare the mechanism behind the recently implemented managed float system for fuel prices as it tries to work out a simpler way to introduce it.

Its minister Datuk Seri Hasan Malek said they were working with the Finance Ministry and the Economic Planning Unit under the Prime Minister's Department on the mechanism, which was to have been made public middle of this month.

"We have put it on hold as we want to come up with the simplest explanation for the rakyat to understand. We don't want them to be confused," he said after launching the Ar-Rahnu Flexi programme at Bank Rakyat here yesterday.

On Dec 1, the Government scrapped subsidies for RON95 and diesel and adopted a managed float system, where the fuel prices will be based on monthly average crude oil prices.

When asked for a deadline to preparing the mechanism, Hasan replied: "Give us time. We will announce it when we are ready and will upload it on our website."

He said he had been bombarded with questions on whether the fuel price would increase or decrease in the coming month.

"I am not going to make any predictions. If I say anything now, they (the people) will start to speculate. Let's be patient and wait together," he added.