PUTRAJAYA ( WNAM MONITORING): Malaysia’s fuel supply remains secure despite rising global oil prices driven by external factors, says Prime Minister Datuk Seri Anwar Ibrahim.
He said the country is fortunate to be among Asean nations with a stable oil supply, even as it faces price pressures linked to international developments beyond its control.
“We are fortunate Malaysia is among Asean countries with a secure fuel supply.
“The rise in price is not caused by us, but from what is happening globally, and we must manage it,” he said at the Natural Resources and Environmental Sustainability Ministry’s monthly assembly.
Anwar also dismissed claims that Malaysian oil shipments do not pass through the Strait of Hormuz, describing such assertions as politically-driven and not based on facts.
“This is the route that must be used. The situation there is complicated, and now there are disruptions,” he said, adding that higher freight and insurance costs have contributed to rising prices.
Citing real-time data, he said it showed congestion in the strategic waterway, with safety risks heightened by geopolitical tensions.
“The strait is narrow, making it difficult to ensure the safety of vessels,” Anwar said, adding that Malaysian vessels, including those operated by PETRONAS, are among the ships navigating the route.
Despite this, Anwar stressed that Putrajaya continues to maintain fuel subsidies, particularly for RON95 petrol, which remains among the lowest-priced fuel globally.
“Malaysia still maintains RON95. We have only reduced the quota from 300 litres to 200 litres because we are burdened by the cost of subsidising petrol and diesel,” he said.
Anwar warned that subsidy costs could surge further if global oil prices spike, adding that the government is already spending about RM5bil monthly from RM700mil earlier this year.
“If prices rise sharply, it could exceed RM6bil a month. At current levels, it is about RM5bil monthly.
“Imagine, over 10 months, that is RM50bil from government funds,” he said.
Separately, Anwar said rising prices and cost-of-living pressures will be discussed at this week’s Cabinet meeting as the government looks for more effective ways to ease the burden on Malaysians.
“Last Friday, I ate at a small stall in Rawang. I spoke with the shop owner, and she said business was okay. But every week, there is a small increase in the price of supplies.
“So if it’s a little, and a little over three weeks, eventually it will affect the shop,” he added.
Anwar acknowledged that while measures have been introduced, challenges remain in containing rising costs.
