[UPDATED] Fuel supply secure but rising global prices strain public finances: Anwar

KUALA LUMPUR — Prime Minister Datuk Seri Anwar Ibrahim has assured that Malaysia’s fuel supply remains secure, but warned that rising global prices continue to place pressure on government finances, even as Putrajaya keeps the subsidised RON95 price at RM1.99 per litre to protect the majority of Malaysians.

He said disruptions and risks to international trade routes stemming from conflicts in West Asia have driven up shipping and insurance costs, which in turn affect fuel prices.

However, Anwar noted that Malaysia is still able to guarantee domestic oil and gas supply through strong ties with key producers, including Iran, Russia, Turkmenistan and Uzbekistan.

“Supply is not the issue, but prices are rising.

“This is not a problem caused by us, but by external factors. That is why we have to contend with the challenge of higher oil prices,” he said at the Ministry of Natural Resources and Environmental Sustainability’s monthly assembly in Putrajaya today.

Anwar, who is also the finance minister, said among the measures taken are maintaining fuel subsidies such as RON95, as well as introducing targeted assistance like the Budi Madani initiative to support affected groups.

However, he stressed that the high cost of subsidies remains a major challenge for the government, requiring periodic policy adjustments.

The government’s current approach, he said, centres on targeted assistance to ensure support reaches those most in need.

It will also continue to track price movements and gather ground feedback to ensure policies remain effective and responsive.

The prime minister also took aim at parties issuing unfounded claims regarding oil shipping routes through the Strait of Hormuz, stressing that the situation is far more complex.

He said some claims, including from certain leaders, suggested that national company vessels do not pass through the route, when in reality it remains one of the world’s key energy trade corridors.

“This is sometimes politics in Malaysia… facts do not matter, truth does not matter… there is no verification, no effort to establish the truth and facts," he said.— May 4, 2026

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