PM Rejects Fuel Price Hike, Vows Continued Subsidies to Shield Malaysians from Rising Costs

SUNGAI PETANI: Prime Minister Anwar Ibrahim has firmly rejected proposals to raise fuel prices despite ongoing global supply disruptions, reaffirming the government’s commitment to maintaining fuel subsidies to protect Malaysians from higher living costs.

Speaking at the launch of the Program Himpunan Rakan Muda MADANI in Sungai Petani, Anwar said the government would continue bearing the substantial cost of fuel subsidies, even as fluctuations in global oil prices place pressure on public finances.

He revealed that fuel subsidy expenditures have at times reached as high as RM7 billion per month, with current additional spending ranging between RM4 billion and RM5 billion monthly. In previous periods, the government had also spent around RM3 billion to RM5 billion each month to keep fuel prices stable.

“Even if we spend RM3 billion a month for 10 months, the total reaches RM30 billion. It is a huge amount, but we are able to manage it through prudent spending and by reducing leakages in government finances,” he said.

The Prime Minister also dismissed suggestions that the government should borrow funds to continue financing fuel subsidies, warning that excessive borrowing would place a financial burden on future generations.

“I can easily take on more debt today and leave the responsibility to the next generation to repay it. That is not the solution. We must work within our means and manage the country’s finances responsibly,” he said.

Anwar stressed that the government’s subsidy policy has enabled Malaysia to maintain some of the lowest fuel prices in the world, particularly for RON95 petrol, which remains priced at RM1.99 per litre.

He said the administration remains focused on balancing fiscal responsibility with the need to ease the cost-of-living burden faced by ordinary Malaysians amid global economic uncertainties.

During the event, the Prime Minister also announced a RM2 million allocation for the construction of a multipurpose hall at Padang Awam, Taman Keladi, aimed at enhancing community facilities in the area.

Among those present at the programme were Youth and Sports Minister Mohammed Taufiq Johari, Dewan Rakyat Speaker Johari Abdul, and Chief Secretary to the Government Shamsul Azri Abu Bakar.