Govt finding ways to maintain oil prices as Middle East conflict escalates

IPOH (March 6): The Ministry of Finance is currently examining appropriate measures to maintain oil prices at existing rates despite facing the challenge of surging global crude oil prices, which have now surpassed the US$100 per barrel mark.

Political Secretary to the Minister of Finance, Muhammad Kamil Abdul Munim, said the current tension between Iran and the United States in the Middle East is expected to have a direct impact on the global oil supply chain and put pressure on the economic stability of many countries, including Malaysia.

“The government today is still closely monitoring these developments from time to time, ensuring that all economic planning can be handled and faced with a higher state of readiness.

“So far, the situation is still good, but we anticipate that there may be several important measures that the government needs to take to ensure that, at the very least, the local economic situation remains under control,” he said after officiating the Motorcycle Handover Ceremony under the Sejahtera MADANI Initiative at the Sungai Tapah Community Hall here today.

He said this when asked how the government is managing subsidies and other related matters following the armed conflict currently occurring in the Middle East.

Muhammad Kamil stated that the government’s primary focus at this time is to ensure that the supply of basic necessities for the people – such as meat, chicken, rice, and sugar – is not severely affected by the closure of air or sea routes in the Middle East.

When asked about preventive steps or efforts the government might take to prevent price hikes for goods if oil prices rise, he said the Ministry of Finance is looking into how the government can maintain oil prices at their current levels.

“I think if the price surges significantly beyond our control, then we will have to face reality. But regardless, what is being done by the government today is an attempt to ensure that the price can still be well-controlled,” he said. – Bernama