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Malaysia Scraps Fuel Subsidies as Najib Ends Decades-Old Policy

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Malaysia will abolish subsidies for gasoline and diesel starting next month as falling oil prices provide Prime Minister Najib Razak the opportunity to end a decades-old policy of cheap fuel.

The cost of the widely used RON 95 grade of gasoline and diesel will be based on a managed float system starting Dec. 1, the government said in a statement yesterday. Moody’s Investors Service said the decision to shift to a more flexible pricing system is a “positive step” for Malaysia.