The Malaysian government reduced the country’s fuel prices today, about 10 days earlier than expected. The new prices would be:

• RON97 petrol RM2.55 a litre (down from RM2.70)
• RON92 petrol RM2.40 a litre (down from RM2.62)
• Diesel RM2.50 a litre (down from RM2.58)

Prime Minister Datuk Seri Abdullah Ahmad Badawi had earlier said that the reduced fuel prices would only be announced at the end of August, however, in a surprise move yesterday, the new fuel prices were announced, effective today.

High inflation and the falling price of crude oil were cited as reasons for bringing forward the reductions. The government also denied that the move was linked to the upcoming Permatang Pauh by-election which is only days away.

The fuel prices will be reviewed every 15 days, and was guaranteed to ‘never’ exceed the previous RM2.70 should the price of crude oil rises again.