By Satiman Jamin

JOHOR BARU, MALAYSIA: The petrol price may fall by up to 15 sen (S$0.06) when it is reviewed at the end of the month.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said the price of diesel, however, might not be affected for the time being because 70 per cent of supply was sold at the subsidised price of RM1.43 (S$0.60) a litre.

He said any reduction in the price of petrol had to be carried out gradually although world oil prices were hovering around US$64 a barrel.

He explained that petrol stations would face huge losses if the price of petrol were to be reduced by a large margin in one go.

Shahrir said the government was subsidising diesel for the transport industry to stave off a possible rise in costs.

"The public will not benefit much from a further reduction of diesel pump prices because only 30 per cent of diesel sold is for private use."

The government spent an average of RM2 billion a month on subsidising fuel, he said.

"I am willing to face the public's anger and criticism for not reducing petrol prices by as much as they had expected if it means that the government can save RM300 million a month for other more useful purposes."

He said Malaysians should be thankful that the government had in place an elaborate system of subsidies and assistance to cushion them from the full impact of the world's economic woes.

"The people of other nations, even the developed countries in Europe, are feeling the full brunt of an economic downturn described as the worst in a century yet we can celebrate Hari Raya and Deepavali in relative comfort here."

New Straits Times/Asia News Network