SEBERANG PERAI, July 25 — The Madani government spends between RM40 billion and RM50 billion annually to keep RON95 petrol prices at RM1.99 per litre despite rising global oil prices, Prime Minister Datuk Seri Anwar Ibrahim said today.
He said the conflict in the Middle East, including tensions involving Iran and disruptions affecting the Strait of Hormuz, had pushed up global fuel, fertiliser and other import prices.
“RON95 is not actually priced at RM1.99. The government pays the difference,” he said in his speech at the National Training Week here.
Anwar said while Petronas meets about half of Malaysia’s fuel needs, the remaining half has to be imported, exposing the country to international price fluctuations.
He said many neighbouring countries recorded significantly higher fuel prices, while the Madani government continued subsidising petrol and diesel to ease the burden on Malaysians.
Besides fuel subsidies, Anwar said the government also allocates about RM15 billion to RM16 billion annually for the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara) programmes.
Anwar also defended the government’s decision to increase civil servants’ salaries, noting that public sector wages had not been reviewed for 12 years before the Madani administration took office.
He said the latest salary revision, the largest in Malaysia’s history, cost the government an additional RM18 billion annually, with lower-income civil servants receiving proportionately larger increases than senior officials.
Anwar said Malaysians should understand the scale of government spending before accepting claims made by political critics.
“We are doing everything we can to protect the rakyat while continuing reforms,” he said.
Malaysia introduced targeted RON95 subsidies on September 30 last year, allowing eligible Malaysians to purchase the fuel at RM1.99 per litre within a monthly quota.
