SERDANG (Bernama) – Consumers will directly benefit from the managed float system effective Dec 1 for Ron 95 petrol and diesel, by way of lower prices, Prime Minister Datuk Seri Najib Tun Razak said.
He said the people will also see greater socio-economic benefits from the managed float system which enables increased savings from subsidies.
“With savings of between RM10 billion (to) RM20 billion annually, we can for sure increase allocations to those sectors deemed important in the context of the country’s socio-economic development.
“The agricultural, rural development, education and health sectors are among those for which we can increase allocations, as they all are directly linked to the wellbeing of the people.
“At the same time, the government is implementing the managed float system to provide direct benefits in the face of declining global fuel prices. If it goes down further, we can make adjustments according to the prevailing global market prices,” he added.
Najib told reporters this after officiating the Malaysian Agriculture, Horticulture and Agrotourism Show (MAHA) 2014, at the Malaysian Agro Exposition Park (Maeps)here, yesterday.
The managed float system decided by the Cabinet yesterday is the same as that for determining the retail price of RON97 petrol from July 2010.
Following the Cabinet decision, from Dec 1, there would no longer be any subsidies for both Ron 95 and diesel as the global market prices are now lower than the pump price.