PETALING JAYA: Malaysia’s fuel subsidy bill has surged more than fourfold in under a week due to a sharp spike in global oil prices triggered by disruptions in the Middle East shipping route, says the Prime Minister.
The national monthly RON95 and diesel subsidies has risen from RM700mil to RM3.2bil within the period, he said in an explainer video shared on the official Facebook page of Datuk Seri Anwar Ibrahim yesterday.
The disruption in the Strait of Hormuz, through which 20% of the world’s oil supply passes, has tightened global supply.
“Within less than a week, global oil prices surged from around US$70 (RM275) to nearly US$120 (RM472) per barrel,” he said.
Despite being an oil-producing country, Malaysia remains dependent on imports, with nearly half of its supply coming through the affected route.
In the post, Anwar said Malaysia exported crude oil worth about US$5.5bil last year but imported almost US$12.6bil, resulting in a deficit exceeding US$7bil.
“Malaysia does produce oil, but we also import more oil than we export,” he added.
He said imported crude must be refined, transported and insured before reaching consumers, with all costs rising during conflict.
The increase has ripple effects, he said, impacting transportation costs, food prices and household spending nationwide.
To shield consumers, the government has stepped up subsidies so that Malaysians do not bear the full brunt of global price increases.
“In these challenging times, Malaysia has chosen to absorb part of the global cost pressures to protect the rakyat,” he said.
Anwar also expressed confidence that the country would be able to weather the challenges ahead, noting that Malaysia has overcome similar pressures in the past.
