PETALING JAYA, Malaysia: Petrol and diesel prices have been slashed by another 10 sen ($0.04) effective today.

The price of RON97 petrol is now RM1.80, while RON92 is selling at RM1.70 a litre.

The pump price of diesel is now RN1.70 a litre.

In a statement, Prime Minister Datuk Seri Abdullah Ahmad Badawi said the reduction was in line with the drop in global crude oil prices.

The retail prices of petrol and diesel have been gradually lowered from their highs of RM2.70 and RM2.58 respectively in June.

Pan Malaysian Bus Operators Association president Datuk Ashfar Ali said the drop would hardly impact his operational costs.

"The damage is already done. The price of daily necessities and foodstuff have gone up and nobody will reduce their prices.

"Spare parts are still expensive - their prices have not gone down either. And the bulk of the diesel used for our operations is under the fleet card system, where it costs RM1.43 a litre."

Ashfar suggested that the subsidised diesel enjoyed by bus operators could be reduced by a further 13 sen to RM1.30.

"With the lower global crude oil price, I feel the Government can afford it."

Pan Malaysian Lorry Owners Association president Er Sui See said with cheaper diesel, lorry operators could consider maintaining transport prices.

"At RM1.70, I think we can sustain the price. Diesel accounts for 35% of our operational costs, and only about half of the operators benefit from the fleet card system."