"At this time, the price of crude oil in the world market has fallen and there is good hope for us to reduce the fuel pump prices. How much we will reduce depends on the reduction of the market price ... I can't say how much (will be reduced)," he said.

The government in June this year increased petrol price by 78 sen to RM2.70 and diesel price by RM1 to RM2.58 following the surge in the price of crude oil in the world market.

Announcing the increase then, Abdullah had said that the government would review the price of petrol and diesel on a monthly basis, depending on the price of the valued commodity in the world market.

The government provides a 30 sen subsidy for every litre of petrol and diesel sold at petrol stations.

Speaking to reporters after opening the Kuala Lumpur Hawkers and Petty Traders Congress , the prime minister said while the quantum of reduction of fuel prices has yet to be ascertained, it 'will definitely be reduced'.

"We are weighing all the possibilities. We have said previously that we would review the prices on a monthly basis and we will make the appropriate announcement on September 1. It will be based on the average of world oil prices taken for the whole month of August.

"The more the price of crude oil in the world market goes down, the better. We will also maintain the 30 sen subsidy that we had announced earlier," Abdullah added.

He said the government would hold on to its earlier announcement that the price of fuel would be reviewed on a monthly basis and announced at the end of every month or the start of a new month. - Bernama