PUTRAJAYA, MALAYSIA: Datuk Seri Najib Tun Razak has brushed off speculation that petrol prices will increase by 40 sen following the government's plans to restructure the subsidy system, including the petrol subsidy.

The Deputy Prime Minister said it was untrue and baseless, particularly when the Cabinet had not discussed subsidy restructuring at its weekly meeting yesterday.

"There's a lot of speculation and talk going around.

'But none of it holds water. The public should not listen to rumours," he said.

Najib said the Cabinet was supposed to discuss the restructuring of the subsidy yesterday but had to postpone it to next Wednesday as several ministers involved in the issue were absent.

He added that the decision to review the fuel subsidy was to ensure it benefited the target group, plug leakages and loopholes and stop abuse.

Najib hinted that under the new reform plan - aimed at ensuring a fair distribution of the subsidy - those with higher affordability would have to pay for "petrol closer to the market price."

On former opposition members joining Umno, he said that according to party procedures, the supreme council would decide whether to accept them, particularly if the applicant had previously left Umno to join another party.

"In such a scenario, the headquarters will accept the application and secretary-general will present the case before the supreme council.

"The fate of their entry into Umno will be decided by the supreme council," he said when asked to comment if it was against party rules to accept applications by former PKR leaders Anuar Shaari and Khairul Annuar Ramli to join Umno.