Petrol prices: Another 10 sen cut to RM1.90

The government has cut petrol prices by another 5 percent, bringing pump prices down by 10 sen per litre as global crude prices continued to ease.

The pump price of RON97 petrol will now be RM1.90 a litre - down from RM2 - while both RON92 petrol and diesel will be RM1.80 effective midnight.

"As the price of oil has visibly dropped, the government has again made a decision to reduce retail prices so that the public can benefit," said Prime Minister Abdullah Ahmad Badawi in a statement released this afternoon.

June's hike saw inflation soar, with the August price index reaching a 27-year high of 8.5 percent, also driven by the escalating cost of food and transportation.

In October, inflation eased to 7.6 percent as fuel prices dropped.

It is the sixth fuel price cut since June's 41 percent hike on the back of soaring crude costs, which sparked angry street protests and calls for Abdullah to resign.

The last cut, by 15 sen, was just over two weeks ago

Gov't earns revenue from pump prices

Global oil prices have plunged so low that the government no longer need to subsidise Malaysian motorists.

Instead, the government is earning money from existing pump prices.

Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad has sought to justify the government's about-turn to its earlier promise to provide a 30-sen subsidy.

Shahrir said that the government should earn revenue from the recent drop of global oil prices as it had given out subsidies when prices were high.

He told Malaysiakini that the government can make a profit if local fuel prices remain at RM2 per litre and global crude oil prices hover at around US$55 per barrel.

The global oil prices have tumbled to just below US$50 per barrel today