PUTRA JAYA, Malaysia: Consumers will not pay more than RM2.70 ($1.12) per litre for petrol next year even if global prices of crude oil escalate.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said the Government decided on the ceiling price during last week's Cabinet meeting.

He added that the Government had also decided to continue with the floating mechanism to determine fuel prices.

"Since the present floating system works fine, we have decided to continue with it.

"Consumers will enjoy a 30 sen subsidy if the market price for petrol is RM1.90 per litre," he told a press conference yesterday.

He said the Government would also continue to make monthly or twice weekly reviews of global fuel prices and would adjust pump prices accordingly.

"While we hope to continue to enjoy low petrol and diesel prices, we still have to brace ourselves in case global fuel prices soar again," he added.

Shahrir said the only thing that has yet to be determined is the ceiling tax that the Government imposes on petrol at retail level.

He said the present tax is 58 sen per litre and the Government intended to lower the rate.

"We want to ensure that every sector of society, be it retailers or consumers, benefit from the fuel-pricing system.

"We want to keep the price of petrol low so that the people have more cash in hand to spend as this will help spur economic growth and activities," he said.

The pump price of petrol is now RM1.80 per litre while diesel is sold at RM1.70 per litre.

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