Malaysia is set to announce on Friday reductions to its fuel and food subsidies, as it tries to reduce its fiscal deficit, website Malaysiakini (www.malaysiakini.com) said.
The government will raise the prices of the RON95 blend, diesel and liquified petroleum gas by 5 sen a litre, the website citing a special briefing for editors at Putrajaya said.
The website also added that the price of sugar will be raised by 20 sen to 2.10 Malaysian ringgit per kilogramme.
The prices will be effective Saturday at 12.01 am.
Think-tank Pemandu is expected to come out with a formal announcement later this evening.
Malaysia's government earlier this year cut subsidies on the benchmark RON95 blend, although it baulked at the wide-ranging reforms recommended by a government thinktank, fearing a voter backlash.
The government recently hiked the price of RON97 by 7 percent as it is subject to a managed float while RON95 remains subsidised by the government.
In October, the government said its subsidy spend would be 24.9 billion ringgit in 2011 up from a planned 23.7 billion ringgit in 2010.
