Finance Minister Lim Guan Eng announced today, 4 January, that the prices for diesel, RON95, and RON97 will drop at midnight
Under the Automatic Pricing Mechanism (APM), the retail price of petrol and diesel will revert to a weekly float pricing
"The retail price of petroleum products will be readjusted on a weekly basis following the controlled float method under the Automatic Pricing Mechanism (APM) formula, in line with the downward trend in oil prices in the world market at the moment," Lim said, reported Astro Awani.
The weekly prices will be announced every Friday, and will take effect at midnight on Saturday.
Lim added that the Cabinet's decision takes into account the view of all parties, including the Petroleum Dealers Association of Malaysia (PDAM)
The government also agreed to raise the oil station operators' margins to 15 sen/litre for RON95 and 10 sen/litre for diesel products, reported The Malaysian Insight.
"The government is committed to stabilising the retail price of petroleum products and, at the same time, implementing a specific pricing (system) that will benefit the people," added Lim.
PDAM previously threatened to protest in various ways against the government's proposal for a weekly float pricing: