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NEAC to decide oil price mechanism on 1st Dec

KUALA LUMPUR, 24 Nov 2008: The National Economic Action Council (NEAC) will meet on 1st Dec to decide on a feasible and more stable mechanism in determining the petrol price.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said today the council would deliberate on whether to set a floor price or fix a managed float system, following the gradual drop of the world crude oil price which had now fallen to US$50 per barrel.

“This development was beyond expectation, the oil price dropped significantly. We will discuss the direction that we will take. Do we want to fix a floor price or continue with the present system where we reduce the price when the price drops?

“If we fix a floor price, how low should it be, or adopt a managed float system,” he told reporters after opening the Heads of Asean Intellectual Property Offices Conference, here.

Currently, the price is adjusted on a fortnightly basis based on the market price. The pump price for petrol is now RM2 per litre while the diesel price is RM1.90 per litre.

He said the council would also look into the “pros and cons” of each mechanism, in terms of the benefits for the people at large, contributions to the government’s coffer and on the impact of developing alternative energy sources.

On another development, Shahrir said the Fair Trade Bill, which is in the final stage of being drafted, would be tabled in Parliament next June.

He said the Bill was to encourage ethical and healthier business practices besides replacing the price control regime currently used. — Bernama


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