Malaysia to reduce fuel subsidies as inflation weakens

KUALA LUMPUR -- Malaysia is phasing out gas and diesel subsidies as inflation eases, working to reduce expenditures that ballooned during the coronavirus pandemic and rebuild government finances.

Fuel subsidies put a cap on prices, with the government covering any excess. The retail price of the commonly used gasoline RON95 is currently fixed at 2.05 ringgits (46 cents) per liter, about 20% of the price of gasoline in neighboring Singapore.