Malaysia to review fuel price subsidies

Deputy Finance Minister for Malaysia Donald Lim said that the government will review fuel prices if the price of crude oil reaches US$110-120 per barrel.  For now, however, fuel prices will remain the same, he said. “We know at this juncture, a lot of other things have also increased, including food prices and housing.  So the government decided not to increase fuel prices,” he said. However, if oil prices continue to climb, the government will act to spend more on subsides. This in turn will lead to a higher budget deficit and could affect economic growth. (May 27, 2011)