Pump prices for fuel have been reduced by up to 20 sen a litre from today.
Premium unleaded petrol (RON97) is now priced at RM2.30 per litre after a 15-sen reduction, while unleaded petrol (RON92) will sell at RM2.20, 10 sen lower.
The biggest price cut is for diesel, which now costs 20 sen less at RM2.20 per litre.
Prime Minister Datuk Seri Abdullah Ahmad Badawi said the decision to reduce pump prices, less than three weeks after a 10-sen cut, followed the drop in world prices for crude oil.
"The government decided to expedite the reduction of retail fuel prices, so as to enable the people to quickly benefit from it," he said yesterday.
This is the third time the government has brought down fuel prices since it cut subsidies in June, resulting in the price of petrol reaching RM2.70 a litre.
The last review was on Sept 24.
In the first review on Aug 23, the retail price of RON97 was reduced by 15 sen and RON92 by 22 sen to RM2.40 per litre.
Diesel then saw a drop of eight sen from RM2.58 per litre before being reduced further to RM2.40 per litre last month.
The government had announced on Aug 1 that pump prices would be adjusted according to world crude oil prices on the first day of each month, starting Sept 1.
A minimum subsidy of 30 sen a litre and a ceiling price of RM2.70 a litre for petrol had been fixed until at least year-end.
In Kota Kinabalu, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said the decision was made now because of the risk of the world crude prices falling steeply.
"The drop (in retail prices) has to be gradual" in order to prevent severe shortages of fuel.
He said there was no reason for petrol station owners to fear losses as they had been informed on Monday not to replenish their supplies until today.
Shahrir said a proposal to speed up decision-making on fuel price changes would be tabled in cabinet on Friday.
Under the proposal, prices would be determined by a committee comprising the prime minister, finance minister, second finance minister and the domestic trade and consumer affairs minister instead of the full cabinet.
"The point of this is we should deliver the price reduction as fast as we can," Shahrir said.
"In situations like this month when the crude prices have dropped rapidly, a decision needs to be made speedily."