The Penang government wants local fuel prices to be revised daily according to the global oil market rates.

It also urged national energy producer Tenaga Nasional Bhd to reduce its electricity tariff across the board, which the utiility had raised by 24 percent in July due to hiking fuel prices.

penang anti isa forum 150908 lim guan eng Since currently oil per barrel cost only between US$75 and US$80 in the global market, Penang Chief Minister Lim Guan Eng said it was only logical that local petrol and diesel cost less than the present prices.

"When global oil price goes up, the local fuel cost more. Therefore when the global oil price comes down, the fuel prices here should also reduce," he told a press conference in George Town today.

He said TNB should follow suit by reducing electricity tariff to reduce the burden of the people.

"If the government and TNB can do this, it will help the people a lot," he added.

Lim felt it would not be difficult to let fuel prices fluctuate on a daily basis in today’s world dominated by information technology.

"Since government's oil subsidy has been fixed, it will not be difficult to make daily adjustments to oil prices with the help of computers," he added.

He also called on Finance Minister Najib Abdul Razak to comply with the international benchmark to adjust local fuel prices.

Lowered by 15 sen

This evening, Prime Minister Abdullah Ahmad Badawi cut fuel prices, the third time in as many months, to track falling world oil prices and in a bid to curb rising inflation in the country.

Effective midnight tonight, pump prices of petrol RON97 would be lowered by 15 sen to RM2.30 per litre. RON92 will be reduced by 10 sen to RM2.20 per litre, whle diesel will be lowered by 20 sen to RM2.20 per litre.

"The government decided to speed up the reduction in retail prices so that the people can enjoy the benefit sooner," Abdullah said in a statement issued this afternoon.

Since hiking prices by 41 percent in June, the government has cut fuel price once in August and the second time in September.

RON97 was RM1.92 per litre in June before the hike.