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RISING global oil prices and supply uncertainties are contributing to growing public concern over fuel costs, but economists say domestic measures have helped cushion the impact on consumers.
Speaking to The Vibes, Dr Barjoyai Bardai said that amid ongoing volatility in the global energy market, factors such as geopolitical tensions, supply chain disruptions, and production controls by major oil-exporting countries have pushed fuel prices upward worldwide.
Critical transit routes, he said, including the Strait of Hormuz, continue to play a significant role in determining supply stability and price movements.
In Malaysia, however, the government has maintained fuel subsidies to mitigate these external pressures.
The price of RON95 petrol has recently declined from RM2.05 to RM1.99, and authorities have pledged to keep prices stable despite constraints in supply.
“Claims that fuel prices are 'uncontrolled' do not accurately reflect the situation. Malaysia remains relatively protected compared to other countries due to continued government intervention,” he explained.
On diesel price increases, he noted that targeted assistance has been introduced, benefiting approximately 40,000 recipients who receive RM300 monthly.
According to him, this level of aid exceeds the support provided under the RON95 subsidy framework.
“Public dissatisfaction may arise from gaps in aid distribution or perceptions that assistance is insufficient,” he added.
Nevertheless, he emphasised that individuals who have yet to receive support can still apply through the relevant channels.
He warned that Malaysia’s subsidy system may only remain sustainable for about another year if global oil prices continue their upward trend.
Despite this, he maintained that there is little basis for blaming the government, as subsidies continue to ensure that Malaysians enjoy comparatively lower fuel prices than much of the world.
Recently, the Prime Minister described certain individuals who blame the government for the rise in retail fuel prices as “people who are not very intelligent,” as well as those who are unaware of global developments.
Speaking in Kuantan, Pahang, Anwar Ibrahim said the situation becomes worse when these parties try to politicise everything that happens.
“There are people out there who are not very smart, and they blame us.
“You cannot blame us. Don’t you read books? Don’t you follow the news? Do you really not know what is happening in the world?
“Don’t you know there are disruptions in the South (Strait of Hormuz)? This is the problem—everything ends up being politicised in this country,” he said while speaking at the Himpunan Anak Pahang Madani 2026 event. – April 5, 2026