KOTA KINABALU: The sharp rise in global oil prices has not necessarily translated into higher revenue for oil-producing Sabah, says state Assistant Finance Minister Datuk Mohd Ishak Ayub.
He said the Middle East conflict pushed Brent crude prices up by 45.5% from US$71 per barrel in February to US$103 in March, based on US Energy Information Administration data.
"This increase in prices, however, does not fully translate into higher state revenue.
"The stronger ringgit against the US dollar has reduced the value of sales when converted into local currency. The exchange rate at market close on April 24 was RM3.97," Ishak told the state assembly on Monday (April 27).
Junz Wong (Warisan-Tanjung Aru) had asked if the state stood to earn more oil revenue.
Ishak said the state would get a more complete picture of the actual revenue once it receives payments for March and April, due on Tuesday (April 28) and May 28, respectively.
He added that based on projections, the revenue for the two months is estimated at RM96.5mil based on estimated sales by oil volume and the 5% state sales tax.
"The projections reflect an increase of RM8.9mil from February," he said, adding that the figure could change based on market developments.
