Friday, May 28, 2010

Malaysia petrol prices could rise initial 15sen/ltr

Wed May 26, 2010 9:04pm EDT

KUALA LUMPUR, May 27 (Reuters) - Malaysia's government could hike petrol prices by an initial 15 sen (Malaysian cents) per litre from their current price at some stage this year under plans presented by a body advising the government on how to cut subsidies.

The benchmark RON 95 grade currently costs 1.80 ringgit ($0.543) per litre.

The proposals were made in a public presentation on Thursday to win over voters to accepting higher prices as Malaysia seeks to reduce its budget deficit which stood at a 20-year high of 7 percent of gross domestic product in 2009.

Under the proposals presented by the advisory body, the price of petrol would be hiked some time this year followed by two price hikes totalling 20 sen per litre in 2011 and two more of 20 sen per litre in 2012.

In 2013-2015, the price hikes would slow and by the end of 2015, the price of RON95 would stand at 2.60 ringgit per litre, according to the plans that have yet to be approved by the government.

The forecasts were based on a crude oil price forecast of $73.06 per barrel for 2011 and $79.41-$94.52 for 2013-2015.

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