THE retail prices of fuel will be maintained on a managed float system based on the global price of crude oil, which is currently trading at US$63 (RM264) per barrel, Second Finance Minister Johari Abdul Ghani said.

He said in 2008, the global crude oil price reached US$140 per barrel and RON 95 then was retailed at RM2.70 per litre compared with RM2.31 per litre now.

“When it comes to a stage where we have to discuss it, we will discuss it. As for now, it is still far off, as we have to remember that it was US$140 per barrel before,” he said at the Kampong Baru Food and Arts Festival 2017 organised by the Kampong Baru Development Corporation in Kuala Lumpur today.

Johari, who is also Titiwangsa MP, said the fluctuating price of crude oil was beyond the government’s control but that it would monitor the situation and distribute the 1Malaysia People’s Aid (BR1M) to prevent the lower income group from falling into poverty.

“Today’s float scheme will be maintained as (the global crude oil price) is beyond the government’s control.

“It’s still manageable at RM2.31 per litre,” he said.

“Malaysia is the 25th largest oil producer, not the number one or two. If we were to look at other oil producers, some produce up to 11 million barrels a day,” he said.

“We cannot control the world’s crude oil production. What we can do is monitor the situation to avoid causing hardship to the people,” he said.

Commenting on the stabilisation of the ringgit, he said there were many factors for it and, as the global outlook was good, it is estimated that next year, the currency should advance to around RM3.80 against the US dollar.

“Since Malaysia is an open country and we are trading with all countries in the world, we are reaping the benefits.” – Bernama, November 11, 2017.