Malaysia allocates RM2 billion monthly for fuel subsidies

Kuala Lumpur — The Malaysian government is allocating 2 billion ringgit or approximately Rp8 trillion every month to maintain the price of RON 95 petrol at 1.99 ringgit (Rp8,586) per litre amid global uncertainties.

“The petrol subsidy (RON 95) for the country each month is 2 billion ringgit,” said Anwar Ibrahim during an iftar gathering in Sabah, Malaysia, on Sunday.

He pointed to the ongoing conflict in the Middle East and the impact of the Strait of Hormuz closure, which has blocked at least 400 oil tankers transporting petroleum, gas, and machinery.

“Prices will skyrocket. Oil prices are currently 104 US dollars per barrel,” Anwar said.

“Alhamdulillah, we can still manage. Although I mentioned previously, the cost of RON 95 is 2 billion ringgit per month, the diesel subsidy for Sabah and Sarawak this year is 4.6 billion ringgit,” Anwar Ibrahim stated.

The RON 95 petrol price of 1.99 ringgit per litre is a subsidised price applicable only to Malaysian citizens holding national identity cards.

The unsubsidised RON 95 petrol price in Malaysia is 3.27 ringgit (Rp14,000) and RON 97 petrol, reserved for vehicles with foreign number plates, costs 3.92 ringgit (Rp16,879).

The Malaysian government is currently monitoring the misuse of subsidised petrol.