The price of RON95 fuel may go down by 20 sen to 27 sen per litre, according to a report by Oriental Daily.
The Chinese language daily, citing sources, said the announcement is expected to be made by Finance Minister Lim Guan Eng.
Currently, RON95 is priced at RM2.20 per litre, RON97 at RM2.50 per litre and diesel at RM2.19 per litre.
The report said the decision was arrived at after a "heated debate" during the cabinet meeting.
It said that the new price would also address concerns raised by the Petroleum Dealers Association of Malaysia (PDAM).
Meanwhile, Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail confirmed the new fuel price will be announced tomorrow but did not reveal the quantum.
"As mentioned by the prime minister and finance minister that a decision on the price of RON95 and diesel will be decided by the cabinet.
"The cabinet met yesterday to discuss the matter, and it reached a decision.
"It will be announced tomorrow," said Saifuddin was quoted as saying by The Star Online.
On Dec 24, 2018, Lim announced that petrol and diesel prices will be determined by the weekly float system so as to reflect the declining price in global crude oil.
However, PDAM said petrol dealers will suffer losses from such a move and requested an increase in the profit margin allowed by the government.
Subsequently, Lim announced a postponement of the new pricing system until the cabinet addressed PDAM's concerns. The deadline was set for tomorrow.