The prime minister said the recent fall in world oil prices plus the weakening of the ringgit gave the government a window of opportunity to lower local pump prices.
With Hari Raya imminent, Pak Lah hoped the reduction would help to lighten the burden of Muslims who spend more during the festive season.
Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad said the reduction of prices was made ahead of the Hari Raya celebrations next week.
Though the government had initially planned to only adjust fuel prices at the beginning of each month, the cabinet of Pak Lah and Shahrir decided to reduce it a week earlier this month so that the Muslims would have something to celebrate.
With this great news, the Muslims should now have a much happier and merrier Hari Raya.
Selamat Hari Raya Aidilfitri!
The inflation rate has jumped to a 27-year high of 8.5 percent in August, driven by the escalating cost of food and fuel, according to official data released today.
After releasing August's Consumer Price Index (CPI), Domestic Trade and Consumer Affairs Minister Shahrir Samad said he does not expect September's inflation to be much lower.
"Although, the full effects of the petrol price reductions in August and now have not been fully factored in yet, September CPI may not be much lower.
"The lower petrol prices is expected to be offset by the increase spending during Hari Raya holidays and the 30 percent surcharge on public transportation," said Shahrir.
But the minister does expect the CPI to have peaked.
On a positive note, Shahrir said that inflation seems to have stabilised.
So, let's be positive. Inflation has stabilized at 8%!!!