A managed float system of pump price is called a “dirty float” by insiders. It is a system that is determined arbitrarily by the Government without being transparent.
Similarly Malaysia’s managed float for fuel prices is just a “dirty float”. No one in their right mind would expect pump prices of petrol or diesel to go up while crude oil price continues to head south massively since June 2014. The benchmark Brent price has come down from USD 115 in June to around USD 70 per barrel.
The pump diesel price should follow industrial diesel prices, which is much lower now.
The Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek said the retail price for RON97 and RON95 will go down by nine sen to RM2.46 per litre and four sen (RM2.26 per litre).
However, the price of diesel would increase by three sen to RM2.23 per litre. This meagre drop in RON97 and RON95, and the 3-sen hike in diesel price, announced by the Government, is most unacceptable.
The current retail price for RON97 is RM2.55 per litre, RON95 RM2.30 per litre and diesel RM2.20 per litre.
The Government must annouce the details of the so-called managed float, otherwise it is just a name for “fuel tax” – Malaysians paying the Government to plug its fiscal holes.