GEORGE TOWN, Jan 1 ― The weekly fuel price float will be implemented within the first week of this year, Finance Minister Lim Guan Eng said.

The Bagan MP said the new fuel price will be announced after the Cabinet meeting tomorrow.

"The weekly fuel price float system was delayed to give the Prime Minister time to meet with the Petroleum Dealers Association of Malaysia (PDAM) and discuss the new system,” he said in a press conference today.

He stressed that the weekly fuel price float system is different from the system introduced by the previous Barisan Nasional administration.

"This weekly fuel price float system will benefit the people as when world petroleum prices fall, the retail fuel price will also drop but when world petroleum prices increased, the retail fuel price will be capped at RM2.20,” he said.

He said the government will subsidise the difference when the world petroleum prices are higher than the retail price of RM2.20.

He said this system is different and a first-of-its kind as retail fuel prices will not go beyond RM2.20 per litre.

Lim said this system will be in place until the government rolls out its petrol fleet card for the B40 group and those eligible for the petrol subsidy.

He said the Finance Ministry will fund the petrol fleet card but it will be implemented by the Domestic Trade, Cooperatives and Consumerism Ministry.

The fleet card will allow those in the B40 group with cars and motorcycles with 1,500cc and 125cc engines respectively, to buy subsidised RON95 petrol.

"We are currently calling for tender for the system and the tender is still ongoing so I don't know the costs for this system yet,” he said.

He said the government aimed to implement the system by middle of this year after which, there will no longer be a cap on retail fuel price.