Prime Minister Anwar Ibrahim reveals subsidies have skyrocketed from RM700 million to RM3.2 billion due to global oil price volatility triggered by West Asia conflict.
KUALA LUMPUR: Government fuel subsidies have surged from approximately RM700 million to RM3.2 billion in less than a week. Prime Minister Datuk Seri Anwar Ibrahim attributed the sharp increase to a global oil price spike caused by conflict in West Asia.
He stated that protecting public welfare remains a top priority for the government. “The public and the majority of traders do not need to pay full market prices because these subsidies are channelled through BUDI MADANI RON95 (BUDI95) and BUDI Diesel,” Anwar said in a Facebook post.
The Prime Minister addressed questions on why Malaysia, as an oil-producing nation, is affected by the price surge. He explained that the Strait of Hormuz, a major global oil route, has been disrupted by the conflict.
This disruption has tightened global supplies and driven prices higher. Anwar noted that nearly 50% of Malaysia’s oil supply passes through the strait.
“Although Malaysia is an oil producer, we actually import more oil than we export,” he clarified. The conflict escalated after the US and Israel began attacks on targets in Iran on Feb 28.
Iran subsequently launched retaliatory strikes and closed the Strait of Hormuz. Anwar emphasised that the government’s subsidy mechanisms are designed to shield citizens from the full impact of volatile global markets.
