Published September 5, 2008
Fuel-price cut by Oct if crude stays at US$109: Abdullah

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(KUALA LUMPUR) Malaysian Prime Minister Abdullah Ahmad Badawi will cut gasoline prices as early as October should crude oil remain at US$109 a barrel or less, as he attempts to gain support and fend off leadership challenges.

Cheap petrol again?: Malaysia will review prices at the pumps by the middle of next month, and may reduce them by 15 sen to RM2.40 a litre
Prices at the pumps will be reviewed by the middle of next month, and may be reduced by 15 sen to RM2.40 (S$1) a litre, Mr Abdullah said yesterday.
After leading his coalition in March to its worst election performance in five decades, Mr Abdullah is defying demands to quit the leadership of his party.
A fuel-price cut would follow a reduction in August and may win him domestic support as opposition leader Anwar Ibrahim mounts a bid for power.
'The people need help with the global crisis and the increase in the price of food and goods,' Mr Abdullah told reporters. He said he would be 'happy' to cut fuel prices. Inflation in Malaysia reached 8.5 per cent in July, the fastest pace in more than 26 years.
Last week, Mr Abdullah said the government's budget deficit this year would swell to 4.8 per cent of GDP, the biggest overspend since 2003. He said yesterday the ringgit, down 3.6 per cent against the US dollar this year, hasn't yet reached a 'worrying level'.
He said he's 'confident' of cutting the budget deficit to 3.6 per cent of GDP in 2009. -- Bloomberg