Business & Finance

Malaysia: Cut in Saudi oil production will affect global oil prices

KUALA LAMPUR, Malaysian Prime Minister Dr. Mahathir Mohamad warned on Monday that the “cessation of oil production” in Saudi Arabia after the attacks on two oil production facilities would affect global oil prices.

In a press statement, Dr. Mohamad said if global oil prices increased, countries would impose more taxes, assuring that Malaysia is able to keep local fuel prices unchanged by offering government support to make up for the high prices.

In a similar statement, Malaysia Finance Minister Lim Guan Eng said that the Malaysian government is still evaluating the impact of the attacks, assuring that it will affect the payment of government subsidies for fuel.

“For the Malaysian oil and gas company (Petronas), it will increase its revenue collection, but for the state, the average user will pose an impact on government subsidies”, he added.

Malaysia need to study this effect in depth, whether because of what happened two days ago or if this situation will be prolonged for a long period of time, he explained.

Source: Kuwait News Agency