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Fuel pricing mechanism reportedly to be retained

Fuel pricing mechanism reportedly to be retained

Minister of Economic Affairs Steve Chen yesterday said that if the domestic fuel prices in January 2008 are adjusted according to the current adjustment mechanism, there will be only "minor adjustments," if any, to the mechanism in the future.
Under the pressure of soaring consumer prices, the Cabinet adjusted the cap for freezing the floating oil pricing mechanism from an accumulative hike of 15 percent to 12 percent, which resulted in a freeze of the domestic fuel prices in December.
The MOEA also announced yesterday that it was planning to scrap a new adjustment mechanism originally scheduled to go into effect beginning January of next year.
Chen said that there are still a few days left for this year and that the MOEA will continue to observe international oil price fluctuation over the next few days.
Unless major changes occur over the next few days, the accumulative domestic fuel hike in December will still exceed 12 percent and the freeze on fuel prices will continue into January.
The floating fuel pricing mechanism that was modified earlier has been comprehensive and to review the mechanism at the moment is not necessar, Chen said, adding that therefore, the original domestic fuel pricing mechanism will remain intact for January.


Updated : 2021-03-05 00:52 GMT+08:00