Malaysia will keep RON95 petrol at RM1.99 per liter as its annual fuel subsidy bill could reach RM45 billion, Prime Minister Anwar Ibrahim said, tying the price policy to relief from rising oil costs.
Anwar spoke Saturday during the National Cost of Living Action Plan 2030 launch, held alongside the Sentuhan Kasih Madani programme at Hang Jebat Sports Complex in Krubong, Melaka. He said crude oil prices had climbed to US$120–US$130 a barrel from about US$70.
If oil prices continue to climb, the government’s annual bill could rise to between RM42 billion and RM45 billion a year, Anwar said. At market prices, he estimated fuel would add RM2 or RM3 to daily household spending, with some people paying at least RM5 a day more. Families taking children to school before commuting to work could face an extra RM10 a day, he said.
Anwar framed the fixed price as support for low- and middle-income households facing pressure on everyday costs. He said claims that subsidies promote dependence on state aid should be considered alongside the financial strain confronting people with low incomes. The arrangement leaves the government to absorb higher costs while maintaining the price charged to drivers, he said.
Anwar said Malaysia should assess economic progress by whether it improves people’s daily lives as well as by growth, investment and trade. He said advances in artificial intelligence and semiconductors need to go alongside work on education, health care, employment and affordability. “We are not talking merely about figures and statistics, but about people,” he said.
