Malaysia’s monthly fuel subsidy has surged dramatically to approximately RM5 billion, Prime Minister Dato Seri Anwar Ibrahim revealed today, citing the impact of rising global oil prices and supply disruptions.
The current figure marks a steep increase from the RM700 million monthly subsidy recorded prior to the outbreak of conflict involving Iran, underscoring the growing fiscal strain on the government.
The sharp rise in subsidies is closely linked to escalating global crude oil prices, which have climbed from around US$70 per barrel to approximately US$115 per barrel. The price spike follows disruptions in the Strait of Hormuz, a critical global shipping route, where tensions have hindered the passage of oil tankers and tightened supply.
Despite these challenges, Anwar emphasised that Malaysia’s fuel supply remains relatively stable. He credited the country’s strong diplomatic and trade relationships with other nations for helping to secure continued access to energy resources.
The government is expected to continue monitoring the situation closely as geopolitical tensions persist, with the rising subsidy bill posing potential implications for Malaysia’s fiscal position in the months ahead.
