KUALA LUMPUR: The government has no plans to recalibrate the 2019 Budget despite prices of crude oil going down, says Prime Minister Tun Dr Mahathir Mohamad.
He said the next move also depends on how much the prices of crude oil will go down by.
“In any case, we are not going to recalibrate immediately because when crude oil prices come down, it will go up again."
The government, he said, will thus have to also prepare for when the price of crude oil rises again.
The prime minister was responding to questions on whether the government is considering recalibrating the 2019 Budget following a further drop in crude oil prices.
He was speaking to reporters after attending a performance of ‘Ola Bola: The Musical' at the Istana Budaya this evening.
Accompanying him was his wife, Tun Dr Siti Hasmah Mohd Ali.
The 2019 Budget’s calculation was made based on a crude oil price of US$70 per barrel.
Meanwhile, when asked to comment on the government's decision to cap the price of RON95 petrol at RM2.08 per litre, down from the previous RM2.20, Dr Mahathir replied: "We decided to maintain this because we can absorb the extra (cost).”
The new ceiling price for RON95 petrol was announced by Finance Minister Lim Guan Eng earlier on Wednesday. He said the decision was made at the weekly Cabinet meeting after taking into account the current trend in the market prices of petroleum products.
Lim said the lowered price cap of RON95 petrol was in line with the Pakatan Harapan government’s commitment to helping to reduce the cost of living.
In January, the government maintained the retail price of RON95 petrol and diesel at RM2.20 per litre and RM2.18 per litre, respectively.
Lim said the price cap would be abolished once the targeted subsidy system for RON95 petrol is implemented in the middle of this year.