Malaysia Spends RM 8 Trillion Monthly to Maintain Fuel Prices

JAKARTA — The Malaysian government allocates 2 billion ringgit, approximately Rp 8 trillion, each month to maintain fuel prices for RON 95 petrol. The fuel price is maintained at 1.99 ringgit, or approximately Rp 8,586 per litre.

Prime Minister Anwar Ibrahim disclosed the subsidy amount during a Ramadan breaking-fast event in Sabah on Sunday.

“The subsidy for petrol (RON 95) for the country per month is 2 billion ringgit,” stated Anwar Ibrahim.

The situation has caused approximately 400 tankers carrying oil, gas, and machinery to be disrupted.

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

Despite facing global energy price pressures, the Malaysian government continues to maintain RON 95 petrol prices at subsidised levels.

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

The price of RON 95 without subsidy stands at 3.27 ringgit, or approximately Rp 14,000 per litre.

RON 97 fuel costs 3.92 ringgit, or approximately Rp 16,879 per litre. This fuel type is used by vehicles with foreign number plates.

The Malaysian government continues to monitor potential misuse of subsidised fuel. Oversight measures are being implemented to ensure subsidies reach their intended targets.