PM: Govt prepared to absorb fuel subsidy cost of up to RM45b a year
MELAKA: The government is prepared to absorb an increase in fuel subsidy costs, which could reach RM45 billion annually amid a surge in global crude oil prices, rather than pass the burden on to the people through higher fuel prices.
Malaysia's government is ready to shoulder the financial burden of rising fuel subsidy costs, potentially reaching RM45 billion per year due to a surge in global crude oil prices, rather than pass the cost onto consumers through higher fuel prices. Prime Minister Anwar Ibrahim affirmed the government's commitment to maintaining the RON95 petrol price at RM1.99 per litre, despite crude oil prices rising between US$120 and US$130 a barrel.
This move aims to protect the public, especially low- and middle-income groups, from the impact of escalating global fuel prices and the subsequent strain on household expenses. If oil prices continue to climb, the government could face a yearly bill between RM42 billion and RM45 billion. Raising fuel prices to match market rates would require consumers to pay an extra RM2 or RM3, or at least RM5 a day.
The PM emphasized that it is more prudent for the government to absorb these costs rather than burdening individuals, particularly hardworking parents who already face additional daily expenses for their children's education and daily commute, potentially costing RM10 more each day.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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