Malaysian deputy prime minister Datuk Seri Fadillah Yusof has told Bernama that the government is now spending RM6-7 billion a month to subsidise fuel – up from RM4 billion just last month, despite the Budi95 monthly quota having been cut from 300 litres to 200 per person beginning this month.
He however said that the government will maintain fuel subsidies to continue helping the rakyat, and that any fuel subsidy policy changes would not be abrupt or sudden, but would be guided by comprehensive data analyses rather than rushed measures.
“This is a challenge we are aware of, and we must rely on data to determine the necessary steps to ensure energy supply remains secure, the people are protected, economic growth continues, and industries receive the support they need.
“Existing subsidy policies, including for RON 95 petrol and diesel in Sabah and Sarawak, will be maintained based on current data to ensure sudden increases in living costs do not burden people,” he said.
Fadillah, who is also the energy transition and water transformation minister, said the government recognises that the West Asia conflict could go on for 1-2 years, but any action taken will prioritise protecting the majority of Malaysians.
What if the crisis continues for up to three years? The DPM said the government is preparing for worst-case scenarios, particularly following supply chain shocks linked to the Strait of Hormuz, which handles about a quarter of global energy supply.
He said Petronas has taken proactive steps to secure alternative supplies from Asia-Pacific, Australia, South America and Africa, while enforcement is being ramped up at the country’s borders to stymie the smuggling of subsidised fuel out of Malaysia.
“This cannot be done by the government alone. Public cooperation is crucial. If there is abuse, report it so supplies benefit our people, not others. Equally important is the prudent use of energy and water. If we act together, we can ensure supply security is sustained over the longer term,” Fadillah said.
The post Fuel subsidies in Malaysia now RM6-7 billion a month, no sudden policy changes but will be data-driven: DPM appeared first on Paul Tan’s Automotive News.
