- Rather than pass the burden to citizens
Malaysia is prepared to absorb fuel subsidy costs of up to RM45 billion (approximately $11.02bn) a year as global crude oil prices surge, rather than pass the burden on to consumers through higher fuel prices, Prime Minister Anwar Ibrahim said.
Anwar said the government remains committed to maintaining the price of RON95 petrol at RM1.99 per litre despite international crude oil prices climbing to between US$120 and US$130 a barrel.
He said the subsidy would help shield the public, particularly low and middle-income households, from rising fuel costs and mounting pressure on living expenses.
“If oil prices continue to surge, the cost borne by the government could reach between RM42 billion and RM45 billion a year,” he said, adding that raising fuel prices in line with market rates could increase daily expenses by RM2 to RM5 or more for consumers.
For parents who drive their children to school before travelling to work, the additional cost could reach RM10 a day, he said.
“It is better for the government to bear the burden than to burden the people,” Anwar said at the Sentuhan Kasih MADANI programme and the launch of the National Cost of Living Action Plan 2030 at the Hang Jebat Sports Complex in Krubong here on Saturday.