KUALA LUMPUR (Nov 16): The government has hinted that it may pay higher cash assistance in the form of Bantuan Rakyat 1Malaysia (BR1M) as a result of higher global crude oil price, and consequently increase the petrol retail price, which at the same time has improved the quantum of funds channelled into its coffers.

According to Second Finance Minister Datuk Seri Johari Abdul Ghani, the government will also continue to monitor the movement of the global crude oil price, which has recently stayed above US$60 per barrel, before it steps in and take any necessary actions in relation to the increasing retail petrol pump prices.

Repeating that every US$1 increase in the crude oil price will increase the government revenue by RM300 million, Johari said, "The authority will ensure that the surplus received from the increase [in] the oil price will be transferred to the rakyat. The scope will be expanded from the bottom 40% (B40) to the middle 40% (M40)."

"If both the fuel prices and inflation rate increase drastically, the government will step in to help the people, especially those from the two categories to ensure that they don't fall below the poverty level," Johari told reporters after officiating the 'Global Marketing Summit 2017' here, today.

Currently, Johari said the government has not set a threshold level of the oil price, which will warrant the authority to step in to take the necessary actions and mitigate the situation.

Echoing a laissez-faire sentiment, Johari said, "The government does not believe in regulating the price of commodities, such as crude palm oil and crude oil."

"We even let the market determine the movement of exchange rate system," he added, noting that Malaysia does not assume any role that could be tantamount to distortion in the free market system.

Bloomberg data showed that the Brent crude oil price touched US$60 per barrel on Oct 27 and peaked at US$64.11 per barrel on Nov 6.

As at 1:45pm, the commodity is trading at US$61.95 per barrel.

Data from the Ministry of Domestic Trade, Cooperatives and Consumerism showed that the price of RON95 has been on the increasing trend since Oct 12, and currently retails at RM2.38 per litre.