By BERNAMA
Lower pump price, if sustained, will translate to a total annual savings of about RM7.5 billion on fuel expenditure by households, Bank Negara Malaysia estimation suggest.
“For households, lower fuel prices will lead to additional disposable income and support private consumption,” said the central bank in its 2014 Annual Report.
This is expected to outweigh the effects of lower income in the commodity sector, which constitutes just 13% of total employment, it said.
The price of Brent crude declined 52.5% from mid-June 2014 to end-December 2014, reaching a five year low of US$47 per barrel on Jan 13, 2015.
This is mainly a reflection of persistent oversupply of crude oil in global markets acompanied by demand growth, the bank added.
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