Prime Minister Anwar Ibrahim has warned that Malaysia may only be able to maintain the current subsidised RON95 petrol price for another one to two months if tensions linked to the ongoing Iran conflict continue to disrupt global energy supply routes.
Speaking to reporters, Anwar said the government is closely monitoring developments, particularly the closure of the Strait of Hormuz, which is a key shipping route for global oil supplies.
Currently, subsidised RON95 petrol is sold at RM1.99 per litre for Malaysian-registered vehicles, while foreign-registered vehicles are charged RM2.67 per litre for the unsubsidised rate.
Anwar explained that under the current circumstances, the government is still able to sustain the subsidised fuel price in the short term.
“We will try to control the impact of the Iran conflict, including the price of subsidised RON95 petrol, which is currently maintained at RM1.99 per litre.
“We will continue to monitor the situation as we can still sustain it for about one to two months,” he said.
Possible Economic Ripple Effects
The prime minister urged civil servants, private sector workers and businesses to remain alert to the potential economic consequences arising from the escalating tensions involving Iran, the United States and Israel.
According to Anwar, although the current attacks remain within a manageable range in terms of economic and geopolitical impact, the situation could worsen if disruptions continue.
He noted that approximately 200 ships are currently stranded in the Strait of Hormuz, forcing shipping companies to take longer alternative routes.
This development is expected to raise transportation costs, which may eventually translate into higher prices across multiple sectors.
Rising Costs Expected
Anwar warned that prolonged disruptions could lead to increases in commodity prices, higher import costs for small and medium enterprises, and rising food prices.
“Since ships have to take longer alternative routes, transportation costs will definitely increase. The government will take immediate measures as the economic impact will be unavoidable if the situation continues,” he said.
The Strait of Hormuz, regarded as one of the world’s most strategic maritime chokepoints, was reportedly closed by Iran following attacks by the United States and Israel earlier this month.
The waterway plays a crucial role in global energy supply, with a significant portion of the world’s oil shipments passing through it each day.
