KOTA KINABALU: Only "very rich" Malaysians will pay market prices for fuel as they can afford it,says Datuk Seri Anwar Ibrahim.
The Prime Minister said the fuel subsidy rationalisation under Budget 2025 will ensure that the subsidies will remain for 85% of Malaysians.
Anwar said that the government would save about RM8bil in the rationalisation exercise that targets 15% of the very rich and foreigners benefiting from the blanket subsidies currently.
He said the fuel subsidies currently cost RM20bil annually.
"This savings will benefit our efforts to help the poor and needy.
"Our current subsidies are enjoyed by the rich and foreigners who should pay the market price," he said in his speech at the Madani Rakyat 2024 Sayangi Sabah programme at the Likas Sports Complex here on Saturday (Oct 19).
He said the government decided on the rationalisation exercise as the political situation is stable and people understand why the government is doing this.
"For ordinary rakyat, the subsidised price of RM2.05 remains," he said.
Anwar added that some critics had told him not to raise fuel prices.
"I want to ask (if they are)... questioning price increases for foreigners and the very rich?" he asked.
He said petrol prices in Malaysia are cheaper than in Singapore, Thailand, Indonesia, Philippines and even Saudi Arabia, the biggest oil producer globally where a litre of petrol costs RM2.65.
