Finance Minister Lim Guan Eng said the government is ready to continue paying for petrol subsidies in the midst of rising global oil prices due to the tensions between the US and Iran.
"For every increase in the oil price by US$1, Petronas will get RM300 million more, but it is Petronas that will benefit.
"The government will not benefit. The government will have to pay higher petrol subsidies.
"Of course we are ready (to pay higher petrol subsidies)," Lim said in a press conference at the Inland Revenue Board (IRB) building in Kuala Lumpur today.
Brent crude oil prices spiked to US$70 per barrel this morning, after it was reported that Iran launched missiles against US military bases in Iraq.
This attack comes after a US airstrike last week killed Iran's top commander Qasem Soleimani.
Lim said the government is looking at an average of US$62 per barrel throughout the year under Budget 2020.
"Many say this hike in oil price cannot be sustained.
"So far the US has not retaliated. So if the conflict ends there, I think the oil price will then go back to (what it was before)," he said.
Right now, he said, things are still very unclear as it has only been one day since the missile attack.
"You got to wait for tomorrow. It is a day-by-day development, but so far the country can manage," he said.
Currently, RON95 is at RM2.08 per litre, RON97 is RM2.65 per litre while diesel is at RM2.18 per litre. - Reuters
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.