UPDATE 1-Petronas sees delay in Malaysia's oil importer status
KUALA LUMPUR, June 5 (Reuters) - Malaysia's recent petrol price increase is expected to delay the country from becoming a net oil importer by 2011, state oil firm Petronas PETR.UL said on Thursday.
"It will be postponed if the demand does not grow at the rate that it should grow," Chief Executive Mohd Hassan Merican was quoted as saying by state news agency Bernama.
He added: "If the rate is reduced from six percent (demand growth annually) to four percent, it will be extended by three to four years to 2014 or 2015."
Malaysia raised petrol prices by 41 percent on Wednesday and the government has said it will start using global market rates for fuel in August to prevent subsidies from eating up a third of its budget.
The government would save 4 billion Malaysian ringgit ($1.23 billion) on fuel subsidies and twice as much by raising the price of natural gas.
But Malaysia is a net oil exporter and earns 250 million ringgit a year in revenue for every $1 rise in crude prices.
Mohd Hassan said for Malaysia to become a net importer, domestic demand in the country should outpace the domestic production.
"We will still produce for a few years but our production may not be sufficient to meet domestic demand so we become net importer," he said.
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