The government today announced lower fuel prices for coastal fishermen and boat operators aimed at reducing the financial impact of a sharp fuel price hike that has sparked public anger.

"We are doing this because there is a justification," Najib Razak, deputy prime minister told reporters following the weekly cabinet meeting.

Najib said some 15,000 coastal fishermen and river boat operators in the interiors of Sabah and Sarawak on Borneo island and in Pahang would enjoy lower petrol and diesel prices.

"We did not make this decision based on (public) pressure. We made the decision because we think they deserve lower prices," he said.

Najib said coastal fishermen would pay RM1 per litre of petrol compared to the retail price of RM1.92 from June while boat operators would pay RM1.20 per litre for diesel, less 0.23 sen with immediate effect.

Biggest ever price hike

Malaysians in February woke up to the country's biggest ever fuel price hike, the latest in a series of increases aimed at curbing the cost of subsidies.

The price of petrol and diesel was raised by 30 sen per litre to about RM1.90 and RM1.58 respectively.

The fuel hike has earned the government public anger and activists are planning more public protests over the weekend.

Last Friday, armed police fired a water cannon to break up an anti-government rally after protesters campaigning against the fuel price increase defied orders to disperse.