Fuel price relief measures may not be sustainable in the long term – COPEC

00-per-litre reduction in the regulatory margin on diesel for one month, effective August 4, to cushion consumers, businesses and public transport operators against rising fuel prices.

COPEC said the intervention was understandable, noting that unchecked increases in fuel prices would trigger higher transport fares, raise the cost of goods and services, drive inflation and ultimately affect the government's fiscal targets.

It also warned that higher fuel costs could force contractors working on government projects to seek contract variations, placing additional pressure on public finances.