PM Anwar: Govt allocates RM2 bln a month to keep RON95 at RM1.99

KOTA KINABALU (March 15): The government has to allocate a subsidy of RM2 billion per month to maintain the price of RON95 petrol at RM1.99 per litre through the Budi Madani RON95 initiative following the surge in world crude oil prices, said Prime Minister Datuk Seri Anwar Ibrahim.

He said the price maintenance was expected to involve a total subsidy of RM24 billion per year to be borne by the government to ensure that the people are not burdened, given that world oil prices have now increased.

The Prime Minister said that apart from maintaining RON95 petrol among the cheapest in the world, the government would also continue to bear the diesel subsidy in Sabah and Sarawak which was set at RM2.15 per litre compared to the actual cost of RM4.30 per litre.

“Last year, the diesel subsidy for Sabah and Sarawak was RM2 billion. But so far this year after the war, the price soared and the government has to pay (an estimate if current prices remain) RM4.6 billion (per year) to cover the diesel subsidy in both states.

“This (price maintenance) is what we are doing. The Chief Minister (Datuk Seri Hajiji Noor) himself has requested that the hard-working Sabahans not be burdened (with increased transportation costs),” he said when speaking at the opening of the National Consumer Day 2026 here today.

Also present were Hajiji, Minister of Domestic Trade and Cost of Living Datuk Armizan Mohd Ali and his Deputy Minister Datuk Dr Fuziah Salleh.

Commenting further on the current surge in oil prices, Anwar said it was caused by the geopolitical crisis in the Middle East, and Malaysia as an independent country strongly opposes military intervention and attacks by Israel and the United States on Iran.

“The tension has caused the closure of the Strait of Hormuz which has resulted in international merchant ships being stranded, thus increasing the cost of transportation and insurance for the global supply chain,” he said.

Despite facing external crises, the Prime Minister is grateful that Malaysia remains peaceful, prosperous and an example of a moderate country to the extent that leaders of other countries have contacted Malaysia to seek its views towards resolving the conflict.

Meanwhile, the Prime Minister reminded the people to delve into the true meaning of the National Consumer Day celebration and also the month of Ramadan by becoming smart consumers.

Anwar advised the public not to be easily influenced by advertisements that lead to excessive spending, but instead to practise moderation and always be mindful to help the poor.

He reminded the public of the warning of economists regarding the theory of conspicuous consumption, where consumers tend to buy unnecessary and beyond their means due to being mesmerised by marketing hype and sentiment, rather than the real needs of the family.

“The government is always active in utilising platforms such as National Consumer Day to educate and enlighten the public so that they are able to make rational assessments, thus choosing goods at lower costs but with good quality,” he said. – Bernama