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KUALA LUMPUR, MALAYSIA - MALAYSIA will cut fuel prices soon, Prime Minister Abdullah Ahmad Badawi was quoted on Friday as saying by the official Bernama news agency.
'If possible, I want to reduce the fuel price right now. Be patient, the government will announce it later,' Datuk Seri Abdullah said.
'The government is studying several matters before making the announcement,' he added.
The cabinet discussed the possibility on Wednesday after a June 4 decision to sharply raise pump prices.
Domestic Trade Minister Shahrir Samad said on Thursday a cut in pump prices would happen only when the government is convinced there is a sustained downwards trend in global crude oil prices.
The government might consider cutting retail fuel prices if crude oil prices stay below US$125 (S$171) a barrel, Mr Shahrir said.
Oil prices have generally trended down in recent weeks.
US crude was at US$123.25 in early morning trade on Friday.
Malaysia's annual inflation hit a 27 year high of 7.7 per cent in June after gasoline prices were raised by 41 per cent and diesel 63 per cent as part of a government effort to ease the state's burden funding expensive subsidies.
Inflation was likely to stay above 7 per cent in July due to the one-off impact from the fuel price hike, Second Finance Minister Nor Mohamed Yakcop said earlier this month.
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