Additional RM5 bln Petronas dividend would ease govt’s rising fuel subsidy burden, suggests Ahmad Maslan

KUCHING (April 8): Petroliam Nasional Berhad (Petronas) should provide an additional dividend to the government to help ease the rising burden of fuel subsidies.

In making the proposal, Deputy Works Minister Datuk Seri Ahmad Maslan pointed out Petronas’ dividend contribution declined from RM32 billion in 2025 to RM20 billion this year despite recording a net profit of RM45.4 billion.

“Based on the net profit, there is still room for Petronas to contribute more.

“I suggest at least an additional RM5 billion to support government spending, particularly fuel subsidies,” he told a press conference when visiting Akademi Binaan Malaysia Sarawak Branch here.

Ahmad said Petronas’ net profit of RM45.4 billion in 2025 represented an 18 per cent decline from RM55.1 billion in 2024, while its revenue also dropped 17 per cent to RM266.1 billion from RM320 billion previously.

He pointed out that after accounting for the RM20 billion dividend paid to the government this year, Petronas still retained about RM25 billion from its net profit.

“Petronas has indicated that the funds are needed for future exploration activities globally, including possibly in Sarawak.

“However, in times of economic difficulty, there is justification to consider increasing dividend contributions to support the government,” he said.

Ahmad noted that during the Covid-19 pandemic, Petronas contributed as much as RM50 billion in dividends to the government.

He said the government is currently facing a sharp increase in fuel subsidy costs, rising from about RM700 million in February to nearly RM4 billion recently, creating an additional financial burden of about RM3 billion.

“With only about RM2 billion allocated for unexpected expenditure in the budget, the government needs to identify additional sources of funding,” he pointed out.

He added that the proposed additional dividend could help sustain existing fuel subsidies, including RON95 at RM1.99 and diesel subsidies in Sabah and Sarawak, as well as the Budi Diesel programme in Peninsular Malaysia.

Ahmad stressed that the proposal was a personal view based on his experience, including serving twice as deputy finance minister, and aimed at ensuring continued support for the people during challenging economic conditions.