Malaysia, the world’s second-largest palm oil producer after Indonesia, will lower its crude palm oil export tax to 5.5 percent in August from 6.5 percent in July, according to a government circular on Monday.

The Southeast Asian nation calculated a palm oil reference price of 2,699.54 ringgit ($629.56) per tonne for August. A price above 2,250 ringgit incurs a tax, which starts from 4.5 percent and can reach a maximum of 8.5 percent.

Palm oil benchmark prices were last down 0.04 percent at 2,550 ringgit.

Malaysia had last raised the tax to 6.5 percent in July after earlier lowering it for three consecutive months.

Source: Reuters (Reporting by Emily Chow; Editing by Jacqueline Wong)