Malaysia's monthly fuel subsidy bill is projected to surge over four-fold to approximately US$813 million, up from US$170 million previously. This dramatic increase is driven by climbing global oil prices amid geopolitical tensions.
Despite the higher costs, the government will maintain current prices for subsidized petrol and diesel, with RON95 petrol remaining at RM1.99 per litre for eligible Malaysians. Finance Minister II Amir Hamzah Azizan stated that the monthly petrol subsidy has risen to US$500 million, while diesel subsidies increased to US$300 million.
The minister assured that Malaysia has sufficient fuel and gas supplies, supported by domestic production and refining capacity. However, he noted the significant implications on the government's budget and stressed the need for forward-looking measures to reduce current burdens and implement sound reforms.
In response to the economic effects of rising fuel prices and ongoing global conflicts, Prime Minister Anwar Ibrahim has also announced precautionary spending controls. These include cancelling government agency Hari Raya open houses and limiting overseas travel for ministers and officials to promote prudent spending.