Fuel subsidy to be reviewed if oil prices reach US$110-US$120 per barrel

PETALING JAYA: The government will review the fuel subsidy if oil prices reaches between US$110 and US$120 per barrel, says Deputy Finance Minister Datuk Donald Lim Siang Chai.

The government yesterday decided to maintain the prices of RON95 petrol, diesel and liquefied petroleum gas (LPG) for the time-being. "We know at this juncture, a lot of other things have also increased, including food prices and housing. So the government decided not to increase (fuel prices," he told reporters after opening Standard Financial Planner Sdn Bhd's new office here today.

Besides, the decision was also based on declining oil prices from US$110 per barrel, as of April, to just above US$100 per barrel, at present, Lim said, adding that the government was closely monitoring the crude oil market.

He said if oil prices continued to spiral, the government would have to spend more on subsidies, which in turn, could lead to a higher deficit and affect economic growth.

"When we (the government) planned the budget for this year, we were looking at oil prices hovering between US$85 and US$90 per barrel.

"Of course if it (oil price) drops below US$100 per barrel, then the government is not likely do anything because we can still find ways to overcome it. But if it goes beyond US$110, then we have to consider (some measures) as it could affect economic growth," Lim said.

Although, people can continue enjoying the fuel subsidy, Lim also advised then to be prudent. Asked whether there could be an increase in electricity tariff rates, Lim said the National Economic Action Council would meet tomorrow to discuss and decide on the issue.

On Malaysia's economic outlook in the second quarter, Lim believed the country would be able to register a better growth of 4.6% amid rising foreign direct investments. - BERNAMA

OMAN who is a smaller oil producer than malaysia their fuel price is only rm1 per litre..........

phoenix wrote:OMAN who is a smaller oil producer than malaysia their fuel price is only rm1 per litre..........

yaloh they shd find fund fr somewhere 2 cover ...

i know someone who used to work for petronas....he said the subsidy money go to a few ppl's pocket.....and the company usually have luxurious team building activities [You must be registered and logged in to see this image.]

phoenix wrote:i know someone who used to work for petronas....he said the subsidy money go to a few ppl's pocket.....and the company usually have luxurious team building activities [You must be registered and logged in to see this image.]

i heard of tat ... geram

that's y ppl rather die to be a politian .......

ejam77 wrote:that's y ppl rather die to be a politian .......

if u r politician nonit bb trading.......u can do insider trading like tcube at 5ct.........or get ipo [You must be registered and logged in to see this image.]

phoenix wrote:

ejam77 wrote:that's y ppl rather die to be a politian .......

if u r politician nonit bb trading.......u can do insider trading like tcube at 5ct.........or get ipo [You must be registered and logged in to see this image.]

if i am politian maybe i'll ask the best remiser to play my money........hehhehhehehehehe

ejam77 wrote:

phoenix wrote:

ejam77 wrote:that's y ppl rather die to be a politian .......

if u r politician nonit bb trading.......u can do insider trading like tcube at 5ct.........or get ipo [You must be registered and logged in to see this image.]

if i am politian maybe i'll ask the best remiser to play my money........hehhehhehehehehe

hope u gv tipsy so we can sapu kaw kaw