Latest news with #OrganisationofthePetroleumExportingCountries
The Star
2 days ago
- Business
- The Star
Global oil refiners see short-term boost
LONDON: Refiners across the globe are reaping unexpected profits from producing key fuels in recent weeks, offering an ailing sector respite before an anticipated weakening later this year, as plant closures have tightened fuel supply needed to meet peak summer demand. The strength in fuel markets contrasts with crude oil prices falling to a four-year low in May, after the Organisation of the Petroleum Exporting Countries and its allies (Opec+) unwound output cuts faster than planned. It also suggested demand has so far proved resilient despite ongoing concerns about the impact of tariffs. 'Margins are strong because the balance of products – supply and demand – is still tight,' said Sparta Commodities analyst Neil Crosby. Refining margins reflect the profits a plant makes from processing crude oil into fuels such as petrol or diesel. Just a few months ago, oil majors were warning 2025 would be a bleak year for refining. TotalEnergies and BP reported lower first quarter profits because of weaker earnings from fuels. Refiners have broadly struggled with waning demand from economic slowdowns, an increasing uptake of electric vehicles and competition from newer plants in Asia and Africa. Global composite refining margins reached US$8.37 per barrel in May 2025, according to consultancy Wood Mackenzie, their highest since March 2024, but still much lower than the US$33.50 average in June 2022 during the post-pandemic demand recovery and in the wake of Russia's invasion of Ukraine. Closures in the United States and Europe have slowed global net refinery capacity growth below demand growth, helping to make operational refineries relatively more profitable. Global diesel supply could decline by 100,000 barrels per day (bpd) year-on-year in 2025, while demand will drop 40,000 bpd, according to energy consultancy FGE. Petrol supply will decline by 180,000 bpd, with demand rising by 28,000 bpd. 'We are therefore seeing a tighter product market for key transport fuels, which is exerting upwards pressure on margins, much to the relief and joy of regional refiners,' said FGE's head of refined products Eugene Lindell. Refiners of all fuel-producing configurations are benefitting from current margins, FGE's head of refining Qilin Tam added, as light fuels such as petrol and heavy products like fuel oil have recently increased. In Europe, closures include Petroineos' Grangemouth refinery in Scotland and Shell's Wesseling facility this year, as well as a part closure of BP's Gelsenkirchen refinery. In the United States, LyondellBasell's Houston refinery was shuttered this year, while Phillips 66's Los Angeles refinery and Valero's Benicia refinery are set to close in October 2025 in April 2026, respectively. Unplanned refinery shutdowns have also compounded the impact of closures. A power outage across the Iberian peninsula on April 28 took around 1.5 million bpd of refinery capacity offline, JPMorgan noted, with 400,000 bpd of that still shut in two weeks later. Two of the world's major new refinery projects, Nigeria's giant Dangote refinery, and Mexico's Olmeca refinery, both had unplanned outages on petrol-producing units in April. Fuel inventories at key hubs have declined this year, creating extra demand for refinery production heading into the peak summer season. Stocks in the Organisation for Economic Co-operation and Development region, which includes the United States, the European Union and Singapore, fell by 50 million barrels from January to May, according to JPMorgan analysts. 'This significant reduction in product stocks has underscored the resilience in product prices,' the analysts said. Global fuel demand in the northern hemisphere is highest in summer as motoring and air travel increase. In the Middle East, heavy fuel oil demand peaks in summer to meet cooling demand when temperatures soar. 'Strength in the northern hemisphere summer demand growth is where we see some support to margins,' said Rystad Energy analyst Janiv Shah. US refining executives have been upbeat on demand, while noting relatively low stocks. 'Our current petrol supply outlook is for those inventories to continue to tighten,' Phillips 66 executive vice-president Brian Mandell said on the firm's first quarter earnings call. Marathon Petroleum's domestic and export businesses were seeing steady demand for petrol, and growth for diesel and jet fuel compared to 2024, chief executive officer Maryann Mannen said on its earnings call. However, analysts have warned that the current strength may soon fade as demand is hit by trade wars, and as fuel production rises as plants look to profit from higher margins. 'We have the view that there is a bit of a short-term bump,' Wood Mackenzie analyst Austin Lin said. Global oil demand growth is set to average 650,000 bpd for the remainder of 2025, falling from just short of one million bpd in the first quarter as trade uncertainty weighs on the global economy, according to the International Energy Agency. 'Refiners should be hedging everything now, as I think this is as good as it gets for them,' a veteran oil trader, who asked not to be named, added. — Reuters
Arabian Post
3 days ago
- Business
- Arabian Post
Oil Prices Rise on OPEC+ Supply Restraint and Geopolitical Tensions
Arabian Post Staff -Dubai Oil prices strengthened sharply as OPEC+ agreed to a modest increase in production, falling short of some market expectations, while escalating geopolitical tensions in Ukraine and Iran added further upward pressure. West Texas Intermediate crude futures climbed 2.8%, settling near $63 per barrel, reflecting a cautious market balancing supply concerns against demand uncertainties. The Organisation of the Petroleum Exporting Countries and its allies approved a production boost of 411,000 barrels per day for July, a figure that surprised some analysts who anticipated a larger output increase. This decision followed extensive negotiations marked by dissent from several members, including Russia, which has historically played a pivotal role in the alliance's supply management. The group's choice to limit production growth indicates a strategic effort to maintain price support amid a volatile global economic outlook. ADVERTISEMENT Within the alliance, certain countries advocated for a pause in the output hike, citing lingering uncertainties in global demand recovery and concerns over market oversupply. This internal division has led financial institutions to offer contrasting forecasts on OPEC+ policy direction for the coming months. Some banks now expect additional gradual supply increases to ease pressure on energy markets, while others warn of a more restrained approach to sustain price levels. Market participants are also closely monitoring the geopolitical landscape, which has become a significant factor influencing oil prices. The conflict in Ukraine continues to disrupt supply chains and has led to concerns over potential shortages in European energy markets. The war has prompted a reconfiguration of energy trade flows, with European countries seeking alternatives to Russian crude and refined products amid sanctions and supply restrictions. Meanwhile, escalating tensions surrounding Iran's nuclear programme and regional activities have heightened fears of disruptions in the Middle East, a region critical to global oil supply. The possibility of renewed sanctions or military confrontation has contributed to risk premiums embedded in crude prices. Iranian officials have issued statements warning against external interference, further adding to the geopolitical uncertainties that traders are factoring into their decisions. The market's response to these developments reflects a complex interplay between supply management by OPEC+ and external geopolitical risks. While the alliance's measured increase in output signals a cautious optimism about demand recovery, the persistent threats to supply continuity underscore the fragility of the current energy market balance. This dynamic has led to increased volatility in oil prices as traders weigh the prospects of tighter supply against potential disruptions. Analysts note that global oil inventories remain a critical indicator of market health. Recent data show stocks in key consuming regions have fluctuated, influenced by varying rates of economic activity and shifts in fuel consumption patterns. The International Energy Agency has highlighted that while demand has strengthened, it faces headwinds from inflationary pressures and a slower-than-expected economic rebound in several major economies. ADVERTISEMENT Energy firms and investors are responding to the evolving scenario by adjusting their strategies. Some producers are exercising caution in ramping up output, mindful of price swings and regulatory challenges. Investment in exploration and production continues to be scrutinised in light of global energy transition policies and commitments to reduce carbon emissions, factors that could constrain long-term supply growth. The global energy market is also observing shifts in trade flows as refiners and consumers adapt to changing supply sources. Countries in Asia and Europe are recalibrating their crude procurement strategies to mitigate risks and capitalise on price movements. This realignment is creating new patterns of demand that could influence OPEC+ decisions and broader market trends going forward. Despite these complexities, market analysts caution that the oil market remains sensitive to any significant geopolitical escalation or unexpected shifts in production policies. The interplay between supply discipline by producing nations and geopolitical developments will continue to be key drivers of price direction. The potential for further volatility remains high as global economic conditions evolve and political uncertainties persist. Financial institutions remain divided on how aggressively OPEC+ will pursue production hikes in the coming months. Some expect a gradual easing of supply constraints if demand shows sustained improvement, while others predict continued restraint to maintain price support amid ongoing global uncertainties.
The Star
3 days ago
- Business
- The Star
Saudi Arabia tightens grip on Opec+ by pushing through oil surge
RIYADH: When Prince Abdulaziz bin Salman was appointed Saudi Arabia's Energy Minister six years ago, he vowed to heed even the smallest of the Organisation of the Petroleum Exporting Countries and its allies (Opec+). But at the cartel's meeting last weekend, even the most powerful members couldn't block Riyadh's designs. The kingdom steered the group to agree the third super-sized monthly output hike in a row, despite dissent from a faction led by Russia. The Saudis are doubling down on a historic shift, driving oil prices lower as they seek to punish the alliance's quota cheats and reclaim their share of global markets. The policy change dragged crude futures to a four-year low below US$60 a barrel in April, affecting everyone from American drivers to petrochemical users in Asia. It's forcing oil producers to confront an alarming prospect: Just how quickly might the kingdom restart millions more idled barrels? The meeting's outcome marks a new peak in the Saudis' long-running dominance of the Opec+. It raised questions over the future of the alliance and the complex web of relations between Crown Prince Mohammed bin Salman and Russia's Vladimir Putin, as well as US President Donald Trump. 'Saudi Arabia is playing a big role,' Thamir Ghadhban, Iraq's former Deputy Prime Minister for Energy Affairs and Oil Minister from 2018 to 2020, said in an interview before Saturday's meeting. 'There is a sort of power now for the Saudis within Oprc+.' This story is based on conversations with current and former delegates from the organisation and its partners, industry experts and government officials. The latest Opec+ policy shift began on April 3, when Saudi Arabia and seven other Opec+ nations stunned oil markets with the announcement of a supply hike for May of 411,000 barrels a day – triple the scheduled amount. The decision came even as global markets buckled amid faltering Chinese demand and Trump's trade war, causing oil prices to plunge briefly below US$60 a barrel. Rather than build consensus for this reversal, the Saudis had summoned members to an impromptu video conference and unveiled their plans with just days – or in some cases hours – of notice. Officials said they were left in the dark about what was driving the U-turn, offering a range of motives to explain why the world's most stalwart defender of high oil prices was now labouring to sink them. Some representatives said Riyadh simply wanted to appease Trump, who has urged Opec to lower fuel costs and toured Gulf states last month amid a cascade of multi-billion dollar deals. Others believed the kingdom had lost patience with overproduction by Kazakhstan and Iraq, and intended to discipline them through the 'controlled sweating' of lower prices. People familiar with the matter said Riyadh is motivated by the desire to claw back the market share it has relinquished over the years to US shale drillers. The internal confusion persisted when the Saudis convened another video conference in May, resulting in an agreement for a second production surge the following month. This unilateralism contrasts with the early years of Opec+, when negotiations at its headquarters in Vienna could sprawl into the night, or subsequent days, until a compromise between the position of different members was reached. Even though Riyadh typically won, there was at least room for debate. 'Definitely the bigger producer wielded more power, but they were aware that other members have a say and have a role to play,' said Iraq's Ghadhban. 'We had a say. We used to discuss, we used to disagree.' By the time key Opec+ members held their latest monthly video-conference last Saturday, fissures were emerging. Russia, the only member with comparable oil production and geopolitical clout to Saudi Arabia, was supported by Oman and Algeria as it argued for Opec+ to hold output steady in July and wait to assess the impact of earlier increases. But with no other opposition, the Saudi proposal for to another 411,000 barrels a day was approved. While Russia and its allies acquiesced, and delegates denied there was any real split, there was no doubt who carried the day. — Bloomberg
Mint
3 days ago
- Business
- Mint
Will the UAE break OPEC?
On May 31st the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) said that it would pump 411,000 more barrels per day (b/d) of crude in July. The statement marked the third such rise in as many months. OPEC+'s increased production is equivalent to 1.2% of global demand, and represents a drastic acceleration from plans drawn up last year, when the group said that it would raise output by 122,000 b/d a month. Big moves, though not big enough to sink oil prices. You might, therefore, think that OPEC+ is in total control. After all, the cartel, which supplies half the world's oil, exists to keep prices high. In reality, however, it faces a crisis that could mark the beginning of its end. In its 65 years of existence OPEC has navigated many crises, from Gulf wars and America's shale boom to a pandemic-era oil bust. But today is different. Knowing that oil demand could peak in the coming decade, members want to liquidate reserves. That, together with the spending required for petrostates to diversify their economies away from oil, means some are flouting the cartel's cardinal rule: to not supply more than is agreed upon. Although Saudi Arabia, the group's enforcer, is trying to slap them into obedience, one serial cheater is getting a free pass: the United Arab Emirates, OPEC's third-largest exporter, and its biggest menace. To understand OPEC's predicament, look at the justifications for the cartel's latest increases in output. The one broadcast by the group—that 'healthy fundamentals' mean the world needs more oil—does not pass the sniff test. Analysts, OPEC's included, have revised down their demand forecasts to account for the damage of Donald Trump's trade wars. Non-OPEC countries, meanwhile, keep pumping more. The world is swimming in oil. There are more credible explanations for the move. One is that Gulf states are trying to please Mr Trump, who wants cheap petrol in America's forecourts. Another is that the group wants to recover lost market share. A third frames it as an effort by Saudi Arabia to punish members who are flouting their quotas. It is possible that, at the margin, the second 411,000 b/d hike—announced days before Mr Trump started touring the Gulf—helped Saudi Arabia and the UAE obtain goodies from Uncle Sam, such as artificial-intelligence chips. But 'Saudi Arabia does not want to set too much of a precedent,' says a former OPEC executive. Clawing back market share will also prove hard. Oil demand is expected to jump by 1m b/d from May to August in OPEC countries alone, as extra-hot weather means greater need for air-conditioning, which will help absorb the output hikes so far. Should the group opt to pump still more, however, prices could drop below $50, at which point members may revolt. And OPEC+ remains far from recovering its market power. By June its target output will still be 5m b/d or so lower than in August 2022, when it began to announce cuts. What of enforcing discipline? Iraq, last year's biggest overproducer, appears to have trimmed output a little despite not having control over all its production, some of which is in Kurdish territory. Kazakhstan, which overshot by 300,000 b/d in April, is more troublesome. Its production is dominated by international firms over which the state holds little sway. Yet the trickiest pupil of all is the UAE. The country tells OPEC it produces 2.9m b/d, bang on its quota. The cartel's own assessment, which averages estimates from 'secondary sources' (eight consultancies) has not deviated from 2.9m b/d since at least 2023. Computing an exact, independent figure is impossible, since the UAE stopped releasing detailed data years ago. All the same, OPEC's figures look impossibly low: tanker-tracking suggests the country's crude exports alone add up to 2.8m b/d, and that is before accounting for any local refining or additions to stocks. (The country's energy ministry did not respond to our requests for comment.) In private, analysts admit their numbers are massaged. Several—including one at a secondary-source firm—say they produce one estimate for internal purposes and another for external consumption. Two reckon that the UAE overproduces by 200,000 to 300,000 b/d. The International Energy Agency, an official forecaster that OPEC ditched as a secondary source in 2022, estimates the UAE's output at nearly 3.3m b/d in April. Some foreign producers with outposts in the UAE suggest all these estimates are too low. One Gulf-based analyst who supplies data to national and international oil firms goes as high as 3.4m b/d. Almost everyone upholds the fiction in public. After a reshuffle in February, when OPEC dropped America's Energy Information Administration as a source, all of its external assessors are now commercial outfits. Foreign consultancies count the cartel and its oil giants, such as Saudi Aramco and Abu Dhabi's Adnoc, as clients. Journalists fear being cut off. Why does Saudi Arabia, which has a testy relationship with the UAE, allow this? At oily get-togethers its leaders are now frostier to the Emiratis, notes one confidant to Gulf leaders. But they cannot get too angry. Among OPEC+ members, the UAE has long had the most idle capacity as a share of its total production capacity, which generates huge frustration in Abu Dhabi. When global oil demand rebounded post-covid, a clash over quotas twice led the UAE to consider leaving OPEC, which could have been a fatal blow for the cartel. As a consequence, Saudi leaders now fear it might really walk if criticised again. Things will probably get still more fraught. The UAE cares less about low oil prices than Saudi Arabia. An economist at an Emirati bank says that the country needs them at just $50 a barrel to balance its books, whereas its bigger neighbour, which is spending lavishly on real-estate projects, requires them at $90 a barrel. In the five years to 2027 the UAE is slated to invest $62bn in new production, bringing its capacity to 5m b/d, up from 3.6m b/d in 2021; Adnoc, which pumps most of the territory's oil, says that capacity has already almost hit the target for two years' time. The uae's quota has not kept up with this growth. Last year it negotiated a 300,000 b/d increase, to be phased in over 18 months. On May 28th OPEC+ scheduled a more comprehensive revision of quotas—originally due this year—for 2027. The Emiratis are unlikely to accept their straitjacket. One analyst with contacts in both governments says it is only a matter of time before Saudi Arabia and the UAE openly clash. A descent into disorder, fuelled by conflict between OPEC's largest and third-largest exporters, could then make the cartel unworkable. Will-the-UAE-break-OPEC-
The Star
4 days ago
- Business
- The Star
Oil output increase a potential bane
PETALING JAYA: Corporate Malaysia's fiscal position may come under pressure if the Organisation of the Petroleum Exporting Countries and its allies (Opec+) decide to further open the taps to boost oil output. Although Opec+ has agreed for now to keep its output policy unchanged, analysts opined that another production increase of 411,000 barrels per day in July is likely, matching the additional output in May and June. If the increase in oil output further gains momentum this year, it could put a strain on Malaysia's oil and gas (O&G) export earnings as the country is a net exporter of O&G, which could in turn impact its fiscal position and fiscal consolidation initiatives. The lower oil prices coupled with US tariffs and global recessionary risks are seen as hurdles in Malaysia's fiscal consolidation landscape. The government's oil price assumption for Budget 2025, announced last October, was set at US$75 to US$80 per barrel. As at press time, the international benchmark Brent crude was down by 0.35% to US$61.88 per barrel. Fiscal consolidation refers to government policies aimed at reducing deficits and debt accumulation. It involves measures to balance government revenue with expenditure, minimising deficits, controlling public debt, and promoting sustainable economic growth. Economist Anthony Dass told StarBiz that an increase in oil supply by Opec+ can add downward pressure on global crude oil prices. He said Malaysia, as a net exporter, would experience a direct impact from a loss of revenue. 'While the exact scale of the Opec+ increase is still under discussion, potentially around 411,000 barrels per day in July, with more unwinding of cuts by November, any significant addition to supply, especially if it outstrips demand growth, will negatively impact Malaysia's O&G export earnings. 'Looking at the petroleum-related revenue, for every US$10 per barrel drop in oil prices, it is estimated to reduce federal revenue by RM2bil to RM3bil. 'Should global recession drag Brent crude down to US$65 to US$70 per barrel versus (the) US$80 to US$85 baseline, there would be a drop in petroleum-related revenue,' said Dass, who is the senior economic adviser at KSI Strategic Institute for Asia Pacific and a member of the SME Association of Malaysia's National Council. The government aims to reduce its fiscal deficit from 5% of gross domestic product (GDP) in 2023 to 4.3% in 2024 and 3.8% in 2025. Dass is projecting Brent crude to hover at US$60 to US$65 per barrel this year. HSBC Asean economist Yun Liu said the current oil price is lower than the government's oil price assumption of US$75 to US$80 per barrel as announced in Budget 2025 last October. She said this may raise questions on energy-related revenue. 'But there are still a lot of moving parts of the fiscal consolidation plan. For example, we are still waiting for clarity on the sales and service tax (SST) expansion plan. 'It has reportedly been delayed for a month, so eyes are on any concrete plans to implement it. The other elephant in the room is the RON95 subsidy rationalisation. 'When and how it will be implemented will impact this year's fiscal plan,' Liu said. HSBC chief economist for Australia, New Zealand and global commodities Paul Bloxham said he expects the oil price to be on a downward trajectory, with a forecast average of US$68.50 a barrel in 2025 and US$65 a barrel in 2026. That said, he said he sees the upcoming Opec+ meetings as a downside risk to these forecasts, with a high chance that another accelerated supply hike will be announced for July. 'A key driving force for these decisions is expected to be lack of compliance with current quotas by some of the smaller Opec+ producing countries. 'The Opec+ members have also been encouraged by recent announced cuts to capital expenditure by US shale producers, and are expected to continue to aim to gain market share by putting downward pressure on prices. 'There are limited upside risks to the demand for oil, with the key challenge being the global economic slowdown that is underway due to the trade policy shock. 'The upside risks are mostly related to possible supply shocks. These include potential disruption to supply from Venezuela and Libya, and risks of a rebound in supply from Iran, given the risk that an Iran-US nuclear deal does not arrive,' Bloxham noted. Juwai IQI global chief economist Shan Saeed said with Opec+ increasing output, global oil prices might face downward pressure in the short run and recover sooner than expected. He said Malaysia relies significantly on O&G earnings for its fiscal plans and can move smartly to generate revenues from other sources. Increasing the GDP size is a proven strategy to enhance the revenue base and consolidate the fiscal position to bolster the balance sheet of the government, he said. 'We expect Brent crude oil prices to move into two phases in the short and long run. In the short run, we expect the price to be around US$64 to US$67 per barrel. 'However, in the long run it is expected to trade at US$77 to US$83 a barrel based on a few factors. 'They include geopolitical risks, US dollar debasement, supply disruption from shale gas myth, and Opec+ production cuts,' Shan noted. US dollar debasement means the depreciation of the dollar due to the Federal Reserve (Fed) cutting interest rates. Shan anticipates the Fed will start cutting rates from July of this year onwards. He said the greenback has already depreciated 8% year-to-date, and foresees it to further depreciate upon the Fed cutting rates. Malaysia, according to Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid, has been recording trade deficits in crude oil for the past three years. Last year, he said the trade deficits stood at RM37.1bil on the back of total exports and imports of RM26.1bil and RM63.2bil respectively. 'On that note, the contribution from O&G-related revenue to the government is going to be increasingly challenging. Not to mention that Petroliam Nasional Bhd may also need to allocate more capital expenditure for developing the renewable energy space and its overseas investments. 'In a nutshell, the government's revenue stream is expected to be more challenging, leading to more discussion to have other revenue streams to ensure the sustainability of the government finances,' he said, adding that he is projecting on the average for Brent crude to be at US$67 to US$68 per barrel for 2025. Mohd Afzanizam said on the whole the government has done well in managing its fiscal position. The first quarter of financial year 2025 (1Q25) fiscal deficits have been narrowed to 4.5% of GDP from 5.7% in the same period last year, he said. The upward revision in the service tax from 6% to 8% on March 1, 2024, has led to a 30.3% growth in SST collection in 1Q25 and the diesel subsidies rationalisation on June 10, 2024, has resulted in the decline of subsidies and social assistance expenditure from RM16bil in 1Q24 to RM12.9bil in 1Q25, he said. 'I suppose the fiscal consolidation momentum needs to be maintained and the communication will always need to be improved in general in order to get the total buy-in from the masses. 'It's also about the mechanism where it should be easily implemented where the general public can see the positive outcome almost immediately,' he said. OCBC Asean economist Jonathan Ng said the bank has revised its 2025 oil price forecasts downward, with West Texas Intermediate and Brent crude projected to average US$63 per barrel and US$67 per barrel respectively – about US$13 per barrel lower than the average oil prices in 2024. He said the reasons for the downward revision are predicated on slowing global economic growth amid uncertainties in global trade policies and higher-than-expected oil supplies from Opec+ countries. As to the positive growth drivers for the oil market this year in the current environment, Ng said an escalation in geopolitical tensions in Eastern Europe (for example, the Russia-Ukraine war) and the Middle East could lead to the implementation of further sanctions on the Russian and Iranian energy sectors. As a result, he said the supply disruptions are likely to support higher oil prices in the short-term, given the reconfiguration of trade flows. To strengthen the government's fiscal position in the short term Dass said, among others, there is a need to accelerate targeted cash aid for vulnerable groups and micro, small, and medium enterprises, fast-track high-multiplier development projects (especially in digital, green, and transport), and improve targeting of fuel subsidies to reduce fiscal leakage. Over the medium term, he said the government needs to continue fiscal base broadening: e-invoicing and subsidy rationalisation, maintain fiscal discipline to avoid rating downgrades (currently A–/A3 with stable outlook), and reaffirm fiscal consolidation roadmap and medium-term fiscal framework. To boost Malaysia's revenue and have a better grip on its fiscal consolidation, HSBC's Liu said the country should consider raising the tax coffers. 'Its tax receipts amounted to around 12% of GDP, lower than those of peers, so there's still the potential to raise the tax coffers. 'In the absence of a reintroduction of the goods and services tax, the tax tweaks and measures are necessary to boost fiscal coffers,' she said.
