‘Higher oil price makes fuel subsidy less viable’

Dateline 2018-05-29, NST:

The Pakatan Harapan (PH) government may not be able to keep subsidising fuel price for too long if global oil price remains above US$70 per barrel, analysts said.

They estimated that based on the current oil price at about US$76 per barrel, the local fuel price at service stations should be about 40 sen higher than what it is now.

For the week just ended, the benchmark Brent crude oil price suffered its first weekly loss of 2.64 per cent after six straight weeks of gains, settling at US$76.44 per barrel.

Over the past seven weeks, the price of RON95 petrol remained at RM2.20 per litre, RON97 at RM2.47 per litre, diesel at RM2.18 per litre and Euro 5 diesel at RM2.28 per litre.

Prime Minister Tun Dr Mahathir Mohamad recently said the government would no longer be using the weekly fuel price adjustments under the managed float system.


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