Oil Plunge A Panacea For Crude-reliant Asia

A renewed plunge in oil prices is a worrying sign of weakness in the global economy that could shake governments dependent on oil revenues. In Asia, lower oil prices are unambiguously positive for trade balances and government finances as the region is a major oil importer and some nations subsidize the price of fuels. Cheaper fuel would ease financial pressure on manufacturers and small businesses at a time when economic growth has declined steadily over the past two years due to weak demand for exports and government efforts to cool a construction boom. Fuel prices have risen because the government has cut its expensive subsidies, more than offsetting the decline in global oil prices. New president Joko "Jokowi" Widodo says the money saved on subsidies will be spent on infrastructure, education and social welfare programs. Fuel prices have been steadily declining with the latest cut on Tuesday, but Energy Undersecretary Zenaida Monsada said if the price of oil continues to fall, it could mean job cuts for Filipino workers overseas.

Topics:  jokowi   in asia   cheaper   energy undersecretary zenaida monsada   filipino   fuel   oil   plunge   prices   government   global   subsidies   price   steadily   cut   

 

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