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Malaysia Raises Fuel Prices as Najib Seeks to Trim Budget Gap

Malaysia raised fuel prices for the first time since 2010, joining neighboring Indonesia in curbing subsidies that have stretched government budgets and threatened investor confidence.

The price of the widely used RON 95 grade of gasoline will rise 20 sen to 2.10 ringgit ($0.64) a liter at midnight, according to an announcement by Prime Minister Najib Razak today in Putrajaya, outside of Kuala Lumpur. Diesel will increase 20 sen to 2 ringgit a liter. The increases will help the government save about 1.1 billion ringgit this year and 3.3 billion ringgit annually in future by reducing state subsidies, he said.