Malaysia raises fuel price, will double inflation June 4, 2008
Posted by Parti KeADILan Rakyat Bahagian Batu in Antarabangsa, ekonomi, global, Pakatan Rakyat, pasaran, perdagangan.
Malaysia will raise petrol prices by 41 percent on Thursday as part of a fuel subsidy reform that will double the rate of inflation this year and eventually lift Asia’s second-cheapest pump prices to market rates.
The government has said it plans to start using global market rates for fuel in August to prevent subsidies from eating up a third of its budget.
The government would save 4 billion Malaysian ringgit ($1.23 billion) on fuel subsidies and twice as much by raising the price of natural gas, Prime Minister Abdullah Ahmad Badawi said on Wednesday from the country’s administrative capital near Kuala Lumpur. [ from guardian.co.uk here ]