Petrol Price Stays Despite Global Spike

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The price of RON95 fuel will remain the same for the time being, according to the Finance Minister Lim Guan Eng, as global prices spiked following attacks on Saudi Arabian oil facilities.

However, he said this may be reconsidered in the long-term based on more solid assessments, and that decisions should not be made based on spontaneous reaction.

“For the time being, yes (prices will be capped the same),” he told reporters after attending a briefing on the Special Voluntary Disclosure Programme (SDVP) organised by the Internal Revenue Board (IRB), here, today

“But consideration should be made for the long term. Give us some time to make the appropriate arrangements and calculations.”

Lim was asked to comment if the government will continue to subsidise and cap the price of RON95 at RM2.08, amidst increasing global oil prices.

This comes following drone attacks on two key Saudi Arabia oil plants on Saturday, causing massive fires and taking out about half of the kingdom’s vast oil output, equivalent to more than five per cent of global oil supply.

Prime Minister Tun Dr Mahathir Mohamad yesterday said government subsidies of fuel prices would offset any increase in world oil prices caused by the disruption.

Commenting further, Lim said the attacks in Saudi Arabia would have an effect particularly on the government and the end-users.

“For Petronas, if we are to look in terms of revenue, there will be an increase. But for the country and consumers, there will be an impact on the subsidy we are going to pay. It will definitely increase,” he said.

Lim said the matter needed to be examined and studied more thoroughly before any future announcements were made.

“Let us make a more organised and detailed assessment, based on a more credible plan. Because one or two days is too short a time. Let’s see what develops in the future,” he added. – The Sun Daily