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Malaysia to scrap fuel subsidies from December - Star online

Published 21/11/2014, 07:52
© Reuters. Motorists queue to fill up on natural gas at a Petronas station, with the company's headquarters at the landmark Petronas Twin Towers visible in the background, in Kuala Lumpur

KUALA LUMPUR (Reuters) - Malaysia will abolish subsidies for petrol and diesel from Dec. 1, the Star online news portal reported on Friday, citing the domestic trade, cooperatives and consumerism minister, Hasan Malek.

Retail prices for RON95 petrol and diesel will be fixed according to a managed float, the Star reported, similar to the mechanism for the price of premium petrol RON97.

© Reuters. Motorists queue to fill up on natural gas at a Petronas station, with the company's headquarters at the landmark Petronas Twin Towers visible in the background, in Kuala Lumpur

Neighbour Indonesia raised subsidised fuel prices by more than 30 percent this week, a move that is expected to save the government of Southeast Asia's biggest economy more than $8 billion (5.10 billion pound) next year.

(Reporting by Yantoultra Ngui; Editing by Alan Raybould)

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