Malaysia axes fuel subsidies amid plunge in global oil prices

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Malaysia's government says it will completely withdraw fuel subsidies from next month, following the plunge in global oil prices.

Domestic Trade Minister Hasan Malek says fuel prices will now be set at the end of every month based on a monthly average price under a "managed float" system from Dec. 1.

He said Friday the move will allow Malaysians to enjoy the full benefits of the fall in global crude prices.

The world oil price has plummeted 31 percent in just five months, a sharp drop after a four-year period of prices near or above $100 a barrel.

Neighboring Indonesia on Monday also sharply raised fuel prices, saying costly government subsidies would be better spent on infrastructure and development.