Malaysia: Government to provide subsidy if oil prices soar, says Dr M

  • Saudi Arabia’s move to temporarily suspend production at the state-owned Aramco’s two major oil facilities following the drone attacks by Yemeni rebels will definitely impact the global oil prices, according to Prime Minister Tun Dr Mahathir Mohamad.
  • However, he said, in Malaysia, the government practices intervention through a subsidy to offset the price hikes.
  • “If Saudi Arabia had to stop refined oil production by one million barrels (per day), it will definitely impact the global oil prices.
  • “In Malaysia, when there is an oil price hike, we will give a subsidy. Unlike in the United Kingdom, if the price of oil soars, the government will raise the tax and the people don’t complain,” he told a press conference after watching the Putrajaya Boat Race 2019 here 15 Sep 19.
  • Saudi Arabian energy minister Prince Abdulaziz Salman was quoted by Saudi state news agency SPA on 15 Sep 19 as saying that the attacks on Abqaiq and Khurais, two key Aramco facilities in eastern Saudi Arabia, have partially halted crude and gas production from the world’s top oil exporter.

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