The new Pakatan Harapan government will end current fluctuations to fuel prices at the pumps, which is now based on the global market, said Prime Minister Dr Mahathir Mohamad.

"What we have decided is that there will be no more fluctuations, changes every week.

"This is disruptive to business, both the buyers and sellers," Mahathir said at a press conference at the Bersatu headquarters in Petaling Jaya after chairing the Harapan presidential council meeting today.

"So now the price is static. If we have to subsidise we will subsidise," he said.

The former BN government had introduced the managed float mechanism in December 2014 after it cancelled fuel subsidies.

Mahathir also said that Malaysians should not be worried about any potential downgrade in credit rating due to the implementation of the zero-rated goods and services tax (GST) as the country is set to profit from higher oil prices and lower government expenditure.

“(This) the (2018) Budget was drawn up when the oil price was at US$52, (but) now (at) US$70 per barrel, we stand to profit from this," he said.

Mahathir said the offsetting of the revenue mechanism had been taken into account when the government decided to lower the GST rate from six percent to a zero-rated tax.

He also said the fluctuations in oil prices, which would impact government revenue, had also been factored in when deciding to reintroduce fuel subsidies.

Asked about the gross domestic product (GDP) growth outlook for this year, Mahathir said the government had no projection at present, as it was still reviewing the figures that would determine the real economic condition.

“Regarding the figures and the country's financial position, I realise that many of the figures are false.

"We need to determine to what extent they are not truthful (before making any projection),” he explained.