Friday December 17, 2004 - FUEL prices are not expected to rise this yearand the government is expecting two sub-committees to submit theirrecommendations on the use of natural gas vehicles and palm diesel earlynext year.

"The current situation is favourable but the situation is still dynamic,''said Minister in the Prime Minister's Department Datuk Mustapa Mohamed.

Oil prices have retreated by about US$10 per barrel from its near US$55peak. The government has indicated that it might raise petrol prices againif the price of crude oil crosses US$60 per barrel.

"Although Malaysia is a net exporter of oil, the impact of oil priceincrease must be viewed in a wider perspective. In the short-term, higheroil price will increase export revenues. But when oil price increases, thecost of subsidy to be borne by the Government will also be higher,'' saidMustapa in his speech at the conference. He also said the Malaysianeconomy was on track to post a 7% growth this year and 6% in 2005.