The Weekly Fuel Price Float System Will Remain, But That's Not The End Of The Story

First, the good news: the current fuel price float system will remain.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainudin told Malay Mail Online on Tuesday that the government has decided to stick with the weekly announcement of fuel prices.

Hamzah has also rubbished reports saying that there are plans to revert to the original monthly announcements.

“There are people who want the announcement to be made from weekly to monthly. No, the system that we have right now will remain,” he was quoted by the portal as saying.

Now, here comes the bad news: the government is working on a new formula to even the odds.

Hamzah told the portal that the aim of the new formula is to help stabilise the national oil industry and to prevent petrol station operators from suffering losses in case the fuel prices drop further.

He added that the government has met with the oil industry players and they are currently studying a win-win formula for all parties.

So, if you read between the lines, basically what this means is, the new formula will ensure that fuel prices will not drop below the current price of RM1.98 (RON 95) so that petrol station operators can stay in business.

Oh, Hamzah also added that an announcement on the new formula could be made as soon as this Friday.

This came after The Star Online reported in May that 30 to 40 petrol stations were forced to close down since the implementation of the monthly price adjustment scheme in December 2014.