Second Finance Minister Johari Abdul Ghani said the impact of rising global energy prices on Malaysia’s revenue would only be known a year after Budget 2018.

Johari said this to a question from Dr Wan Azizah Wan Ismail (PKR-Permatang Pauh) about the increase in revenue from petroleum products following the rise in global oil prices since the announcement of Budget 2018.

“During the Budget 2018 presentation, the government estimated 2018’s petroleum revenue to average RM37.8 billion, including petroleum income tax, royalties and ancillary income from Petroliam Nasional Bhd (Petronas).

“The estimate was based on an average oil price of US$52 (RM203.01) per barrel. For the period of Jan 1 to Feb 23, 2018, global average oil price was US$67.15 per barrel,” he was quoted as saying by The Malaysian Reserve (TMR).

On average, for every US$1 per barrel increase in global oil price, the government’s revenue would increase by around RM300 million a year, the minister added.

That amount does not take into account dividends from Petronas.

He said due to fluctuating oil prices the difference between US$67 and US$52 per barrel for a period of less than two months would not provide an accurate picture on the real impact.

“For example, if the average oil price was US$67 per barrel for the entire year, based on an estimate where we will see a RM300 million revenue increase for every US$1 above US$52 per barrel, then we will have a RM4.5 billion increase in revenue.

“If the average annual oil price is US$60 per barrel, we will see an additional RM2.4 billion in annual revenue,” TMR quoted him as saying.