The government estimates that subsidies for RON95 petrol could reach around RM2 billion a month, while diesel subsidies may rise to approximately RM1.5 billion monthly if crude oil prices remain at about US$90 per barrel based on current projections.
Deputy Finance Minister Liew Chin Tong said the country’s fiscal position remains strong and the government’s fiscal outlook has not changed despite the increase in global crude oil prices.
He explained that the government would also benefit from higher petroleum revenue, with every US$1 increase in crude oil prices expected to generate around RM300 million in additional revenue.
“The latest fiscal projections will be announced when Prime Minister Datuk Seri Anwar Ibrahim presents Budget 2027 in October, based on the economic situation at that time,” he said during a question-and-answer session in the Dewan Negara.
Liew was responding to a supplementary question from Senator Datuk Mohd Na’im Mokhtar, who asked whether the government could maintain its fiscal deficit target if global oil prices exceeded current forecasts and whether contingency plans had been prepared.
Meanwhile, responding to Senator Datuk Anna Bell @ Suzieana Perian’s question on increasing the BUDI Diesel quota limit for Sabah and Sarawak, Liew said the government is prepared to consider applications from specific groups.
He said certain users, such as pickup truck owners, had already received an additional 100-litre quota through a simplified application process.
“If there are specific cases that require consideration, the government is ready to review them,” he said.
