The government today revealed that fuel prices will remain the same for this year amid public anger over the continued increase in living costs.

According to Bernama, Second Finance Minister Nor Mohamed Yakcop rebutted rumours of an impending hike in fuel prices.

"If you are asking about petrol price increase, the answer is no," he told reporters in Kuala Lumpur.

Last February, the government announced a hefty increase in fuel prices of between 18.5 percent and 23 percent, the largest ever.

The petrol and diesel prices were raised to RM1.92 and RM1.58 per litre respectively. Over the past two years, the cost of petrol has since gone up by 40 percent and diesel by 102 percent.

Following this, the public took their anger to the streets on several occasions. One of the protest saw the police using strong force, leading to what is now popularly known as the 'Bloody Sunday' incident.

The government then promised there will not be no more hikes in fuel prices till the end of 2006, paving the way for rumours that an increase will take place this year.

Political observer see the 'good news' announced by Nor Mohamed as being linked to the general election which is expected to be held by the end of this year.

The public is also fuming over the sharp increase in toll rates for five highways in the Klang Valley effective Jan 1.