KUALA LUMPUR, Nov 5 — Consumers could end up subsidising the federal government if it refuses to reduce current fuel prices amid plummeting global crude oil price, PKR’s Rafizi Ramli said today.

The Pandan MP said global crude has dropped to a four-year low of US$82 (RM274) per barrel according to the Brent standard due to an ongoing international price war lead by Saudi Arabia, and indications point to further depreciation in the price.

However, the reality of falling crude oil price will truly be felt by Malaysians if it drops to US$73 (RM244) per barrel or lower, as that would mean they would be paying market rate or higher at current pump prices, Rafizi noted.

“The government cannot ignore this prediction. At that price (US$73 per barrel), the government will not bear any subsidy cost,” he said at a news conference at the Parliament lobby.

Putrajaya has been progressively reducing fuel subsidies in an ongoing rationalisation plan, raising pump prices for RON95 petrol and diesel by 20 sen most recently on October 2.

The move put the retail price at RM2.30 per litre for RON95 and RM2.20 per litre for diesel, with a stated subsidy of 28 sen per litre for the petrol variant and 32 sen per litre for diesel.

Rafizi today said Prime Minister Datuk Seri Najib Razak has been conspicuously silent on the downward trend in global crude oil prices, and questioned if the government is hoping to quietly remove the fuel subsidy when prices fall further.

“We must bear in mind that fuel is the most dominant cost factor in Malaysia. If you can increase the price of fuel when the cost (of crude oil) goes up, then you must bring it down when the price goes down,” he said.