Malaysia Sets New Fuel Pricing System

June 3, 2008 11:37 a.m. EST

Kuala Lumpur, Malaysia (AHN) - Beginning in August, fuel costs in Malaysia are expected to rise as the government sets up a new price system.

The government said the price of fuel will depend on the global market instead of a subsidized system. Gas costs about $1.77 per gallon now.

Malaysian Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul, as quoted by BBC News, had said that under the new system, the fuel price "will depend on global market prices."

The government has exported most of the oil it produces, benefiting from higher gas prices. However, Malaysia's rulers have voiced support for banning crude oil speculation as nations deal with higher prices of food and other staples.