Friday, October 31, 2008

Fuel down another 15 sen

The government of Malaysia will slash pump prices by another 15 sen from midnight spurred by falling global crude oil prices. The cut is the fourth such reduction since prices were raised last June when world crude prices jumped to US$140 a barrel.

From midnight, pump prices of petrol RON97 would be lowered by 15 sen to RM2.15 per litre. RON92 will be reduced from RM2.20 to RM2.05 per litre and diesel will also be lowered by 15 sen to RM2.05 per litre as well.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said the reduction, the fourth since August, was made following the drastic drop in global fuel prices.

Oil prices slipped below $65 a barrel in Asia Friday, extending declines after data showed the U.S. economy contracted in the latest quarter, reinforcing expectations of a prolonged slump in demand.

Light, sweet crude for December delivery was down $1.44 to $64.52 a barrel in electronic trading on the New York Mercantile Exchange by midmorning in Singapore.

The contract overnight fell $1.54 to settle at $65.96. Oil prices have fallen about 55 percent since peaking above $147 a barrel in mid-July.

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