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

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