Malaysia’s Fuel Subsidies Surge Amid Global Oil Shock

PETALING JAYA: Malaysia’s fuel subsidy bill has ballooned from RM700mil to RM3.2bil in less than a week as global oil prices spiked following disruptions in the Strait of Hormuz, Prime Minister Datuk Seri Anwar Ibrahim said Sunday (March 22).

In a video statement, Anwar explained that the West Asia conflict has tightened global supply, pushing crude prices from US$70 to nearly US$120 per barrel. Despite being an oil producer, Malaysia imports almost half its supply, leaving the nation exposed to external shocks.

Subsidies

Last year, Malaysia exported crude worth US$5.5bil but imported US$12.6bil, resulting in a deficit exceeding US$7bil. Rising costs of refining, transport and insurance have further strained the economy.

To shield households from surging fuel and food prices, the government has expanded subsidies. “Malaysia has chosen to absorb part of the global cost pressures to protect the rakyat,” Anwar said, expressing confidence in resilience against volatility.

Business News

    Staff Writer

    Recent Posts

    JUPEM Director-General Pleads Not Guilty in RM136,000 Corruption Case

    Case underscores ongoing anti-corruption efforts in public sector.

    57 minutes ago

    Meta Introduces Teen Accounts with Enhanced Safety Features

    New features aim to improve online safety and parental control.

    2 hours ago

    Hata Completes US$8 Million Series A Financing Led by Bybit

    Hata, Malaysia's digital asset exchange, raised USD 8 million to enhance its growth and innovation.

    5 hours ago

    Airbus to strengthen defence industry participation in Malaysia

    Airbus expands its defense collaboration in Malaysia, signing agreements with local companies to enhance the…

    6 hours ago

    RGB International – Possible For Sideways Breakout

    RGB International may break its sideways channel, with potential price increases if key resistance is…

    7 hours ago

    ICT Zone Asia – Possible For Sideways Breakout

    ICT Zone Asia may rise above RM0.205, but dropping below RM0.175 suggests potential price weakness.

    7 hours ago

    This website uses cookies.