Prime Minister Dato’ Seri Anwar Ibrahim has reassured the nation that the Government remains committed to protecting the public from skyrocketing global energy prices, revealing that fuel subsidies have surged by RM2.5 billion in less than a week.
In a social media statement addressing growing concerns over why Malaysia—an oil-producing nation—is affected by the Middle East crisis, the Prime Minister detailed the severe impact of the escalating conflict involving Israel, the United States, and Iran.
The Prime Minister explained that the conflict has crippled the Strait of Hormuz, a critical global maritime artery for oil. This disruption has throttled global supply, sending prices into a tailspin.
Crucially, Anwar clarified a common misconception regarding Malaysia’s energy independence: Despite being an oil producer, Malaysia actually imports more oil than it exports. Approximately 50% of Malaysia’s oil supply passes through the now-volatile Strait of Hormuz.
To prevent these global price hikes from hitting Malaysian pockets directly, the government has aggressively expanded its subsidy cushion.
“To protect the people, government subsidies have increased from around RM700 million to RM3.2 billion in less than a week,” the Prime Minister stated. This massive fiscal intervention ensures that the majority of consumers and businesses are shielded from paying actual market rates.
The Prime Minister highlighted that this protection is being funneled through the restructured subsidy framework: Providing targeted relief for RON95 petrol while BUDI Diesel manages costs for the logistics and commercial sectors.
“In an increasingly uncertain world, protecting the welfare and well-being of the people remains the top priority of the MADANI Government,” Anwar concluded.
