Notably, the rise in crude oil prices to above US$84 (RM348.84) per barrel, the highest level since October 2018, augurs well for government coffers. In addition, crude palm oil prices have been on a positive trajectory since early this year. In an earlier report, TA Research estimated that every US$1 (RM4.15) increase in oil prices would add RM300mil to the government’s coffers – excluding dividends from Petronas and other oil tax-related revenues. Note that current prices of crude oil have somewhat doubled from US$42 (RM174.42) per barrel when Budget 2021 was drawn up. “Underpinning Budget 2022 is the expectation that Malaysia’s economic situation will recover from the effects of the Covid-19 pandemic over the course of next year.
