World · Malaysia Bureau
Malaysia commits to RM45 billion annual fuel subsidy despite crude spike
Prime Minister Anwar Ibrahim says the government is prepared to absorb substantial fuel subsidies to keep RON95 petrol prices stable at RM1.99 per litre, even as global oil costs continue climbing.
LSN Malaysia ·
Malaysia's government has reaffirmed its commitment to maintaining affordable fuel prices for consumers, with Prime Minister Anwar Ibrahim stating that authorities are willing to bear annual fuel subsidies of up to RM45 billion. The policy ensures that RON95 petrol remains priced at RM1.99 per litre, shielding domestic consumers from the impact of volatile international crude markets.
The subsidy pledge comes as global crude oil prices have surged in recent months, putting pressure on oil-importing nations to manage domestic fuel costs. By absorbing the differential between international benchmark prices and domestic pump prices, Malaysia aims to protect its citizens from inflationary pressures while supporting economic stability.
The commitment reflects the government's prioritisation of social welfare and cost-of-living concerns amid broader economic challenges. Fuel price controls remain a sensitive political issue in Malaysia, where transportation and energy costs significantly influence household budgets and business operations across the region.
The decision underscores the administration's approach to balancing fiscal responsibility with the immediate needs of Malaysian households and industries dependent on affordable fuel supply.