PUTRAJAYA: The pump price for petrol could go as low as RM1.85 per litre by the end of the month, the lowest in almost three years.

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad, in indicating that the government would further lower the prices of petrol and diesel by 15 sen, said this was due to the dip in crude oil prices which had fallen to US$50 (RM183) per barrel.

The government has reduced the retail price of petrol and diesel five times over the past few months.

The latest occasion was last Monday, when pump prices for petrol and diesel were reduced by 15 sen.

He said that the next round would see pump prices going below the RM1.92 per litre mark set in March 2006.
The price of petrol was increased by 78 sen from RM1.92 to RM2.70 in June after world oil prices skyrocketed.

Shahrir also said that it was unlikely that the price of petrol would be reduced by more than 15 sen.

This was because the revenue that the government was enjoying now from the difference in the ex-refinery price and the price oil companies sold to station operators would be used to cover the subsidy for other things as well as for vehicle rebate payments.

The government is still subsidising diesel at RM1.43 per litre for the public transport sector.

Shahrir said the government had incurred a bill of RM21.4 billion in tax exemptions and subsidies for fuel by last month, compared with RM16.2 billion for the whole of last year.

He also said a price floor for fuel would be decided early next month after the Economic Council meeting on Dec 1.