Putrajaya is considering a price ceiling for fuel to tackle the impact of escalating oil prices.<\/p>\n
Second Finance Minister Johari Abdul Ghani said in certain countries, governments left fuel prices afloat, where oil and gas industry players would determine them.<\/p>\n
\u201cIt is up to the government to set a ceiling which is deemed fair for all.<\/p>\n
\u201cWhen we (the government) have decided on the ceiling price, whether they (oil and gas industry players) want to sell the fuel at lower prices for promotion purposes, we leave it to them. This is one of the options we are looking at,\u201d he told reports on the sidelines of Chinese New Year celebrations hosed by the Malaysia Retail Chain Association in Kuala Lumpur on Tuesday night.<\/p>\n
On the reintroduction of subsidies, Johari said it would not be good for the Malaysian economy as they were unsustainable. After the elimination of all direct subsidies in 2014, fuel prices are set using a managed monthly float.<\/p>\n
Malaysia\u2019s fortunes are closely tied to energy markets. It is the only net exporter of oil among Asia\u2019s major economies and the second-largest liquefied natural gas exporter in the world. Making matters worse, the ringgit also tends to mirror the movement in oil prices.<\/p>\n