Falling crude oil prices on global markets have prompted Nigeria and Malaysia to announce cuts in their fuel subsidy programmes.
Nigeria plans to halve subsidies on oil products as of 2015, reducing the subsidy budget from NGN 971bn (US$5.6bn) in 2015to NGN 459bn (US$2.6bn) in 2015; subsidies should also be cut again in 2016 to NGN 409bn (US$2.3bn) and in 2017 to NGN 371bn (US$2.1bn). The assumed benchmark oil price for the 2015 budget was also lowered from US$78/bbl to US$73/bbl. Nigeria had tried to remove subsidies in 2012, doubling oil prices and spurring massive strikes; subsidies were then reinstated.
In Malaysia, the government has decided to remove subsidies on gasoline and diesel as of December 2014: prices of a popular grade of petrol and diesel will be fixed according to a "managed float" (domestic prices will follow the global oil price evolutions). Malaysia had increased fuel prices in October 2014 but still plans to spend more than US$6bn on fuel subsidies in 2014.