The price of RON95 fuel will go down by 21 sen per litre while diesel will see a 23 sen per litre drop beginning Feb 1.

This means both RON95 and diesel will retail at RM1.70 per litre from 12am.

RON95 has fallen to its lowest level since it was introduced in 2009 at RM1.75 per litre.

Meanwhile, RON97 fuel will see a 11 sen per litre reduction, retailing at a new price of RM2.00 per litre.

The price of fuel has been on a managed float system since the beginning of December last year after the government abolished the subsidy system.

RON95, RON97 and diesel retailed at RM2.26, RM2.46 and RM2.23 respectively in December.

On Jan 1, however, RON95, RON97 and diesel retailed at RM1.91, RM2.11 and RM1.93 respectively.

The significant reduction comes amid continuous fall in global crude oil price.

According to Deputy Finance Minister Ahman Maslan, the drop in pump prices will be good for the country.

"More money to spend, and more investments," he tweeted.

However, PKR secretary-general Rafizi Ramli yesterday said Putrajaya ought to set the price for RON95 petrol at RM1.62 per litre.

Rafizi said this figure would reflect the average market price of RON95 petrol in Malaysia, as determined by the Mean of Platts Singapore (MOPS).

"If subsidies are restored, as sought by PKR, then prices would only be RM1.32 a litre," he said.