Amir Hamzah: Govt to cover fuel subsidies, expected to reach RM3.2 bln monthly for public welfare

KUALA LUMPUR (March 13): The government will ensure citizens continue to receive assistance through targeted RON95 subsidies under the BUDI95 initiative, while keeping petrol and diesel prices unchanged despite the rise in fuel subsidy spending, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

He said the government’s monthly petrol subsidy has increased to RM2 billion, while the diesel subsidy has also risen to RM1.2 billion per month, totalling RM3.2 billion per month, up from RM700 million previously.

“Even though the MADANI Government is dealing with the effects of rising global oil prices, the government will continue to take steps to ensure people are supported, and we are able to maintain the BUDI95 initiative, which provides some relief for the public.

“This burden can still be borne by the government because we have undertaken many reforms and fiscal consolidation over the three years the MADANI government has been in office, and we have the fiscal space to absorb it,” he said at a press conference after today’s Cabinet meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim.

At the time of writing, Brent crude oil rose 0.12 per cent to US$100.6 per barrel.

Amir Hamzah also said the duration of the conflict in West Asia remains uncertain, so the government needs to study forward-looking or “no-regret” measures to ease the burden on the people.

He said that in an uncertain global environment, the government decided to take its own steps to manage the situation.

“For example, the Prime Minister’s proposal that government agencies and government-linked investment companies (GLICs) refrain from holding Aidilfitri open houses is among the cost-saving measures being implemented,” he added.

Earlier, Anwar said a Special Cabinet Meeting had been held to review the country’s fiscal position and closely monitor developments in Iran following the conflict in the Middle East.

The conflict in the Middle East began on Feb 28 when the United States and Israel launched attacks on Iran, which Tehran later retaliated against with missile and drone strikes on US and allied interests in the region.

The conflict and resulting tensions also affected global energy markets when the strategic Strait of Hormuz, which handles about 20 per cent of the world’s oil supply, was disrupted following threats and actions by Iran that impeded vessel passage in the area.

The situation caused global oil prices to become volatile amid concerns about disruptions to the world’s energy supply. – Bernama