DPM Fadillah: Govt monitoring oil prices as subsidy bill skyrockets

KUCHING (March 23): The federal government is closely monitoring global oil price movements amid concerns that crude prices could rise to US$100 per barrel, said Deputy Prime Minister Datuk Amar Fadillah Yusof.

He said the government is currently able to sustain subsidies for RON95 petrol, although the subsidy burden remains substantial.

“As announced by the Prime Minister, for RON95 we have a specific programme. However, the government still has to bear a very large subsidy of not less than RM2 billion per month,” he told reporters during the Majlis Ramah Mesra Rakyat organised by the Gabungan Penghulu and Community Leaders of the P194 Petra Jaya parliamentary constituency at the CIDB Convention Centre here on Sunday.

Fadillah, who is also the Minister of Energy Transition and Water Transformation, said the situation will continue to be monitored to ensure that the subsidy system remains sustainable while protecting consumers.

“For now, we are still able to sustain the RON95 subsidy,” he said.

He added that the diesel subsidy mechanism has also been structured to focus on targeted groups.

“For diesel, although the price follows market levels, targeted groups including the logistics sector still receive subsidies through programmes such as the fleet card,” he said.

According to him, the subsidy arrangements also continue to benefit consumers in Sabah and Sarawak.

However, Fadillah said the government is facing challenges due to fuel price differences with neighbouring countries.

“Our neighbouring countries have much higher diesel and fuel prices compared with Malaysia.

“This has resulted in smuggling activities, meaning illegal sales that not only harm the country but also affect our own people,” he said.

He said enforcement and compliance are therefore critical to safeguard domestic fuel supply.

“We must prioritise ensuring that supplies within the country are sufficient so that smuggling can be reduced,” he said.

Fadillah also called on fuel retailers and industry players to adhere to regulations to ensure supply stability.

“Companies selling fuel and those in the industry must follow all the regulations so that supplies in the country remain sufficient and do not affect our national energy security,” he added.